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Retirement income strategies for the Sandwich Generation

For those in the Sandwich Generation, balancing the financial needs of adult children and aging parents can be overwhelming and push your own financial health and retirement plans to the back burner. That鈥檚 why having a clear strategy is essential. Working with a financial professional and incorporating tools like annuities into a retirement plan can help you manage today鈥檚 financial pressures while improving confidence for the future. 

The financial challenges of the Sandwich Generation

From covering everyday expenses, medical bills and caregiving costs to helping adult children pay down debt, the Sandwich Generation can find themselves pulled in multiple directions. Many people are delaying retirement or dipping into future funds to stay afloat. A recent 黑料社区 study found that retirement readiness among 鈥渟andwiched鈥� individuals has been most impacted by the need to cut back on their own expenses in order to financially support their adult children and extended family. In thinking about retirement, many are concerned about maintaining their standard of living and not having enough assets to retire when they had planned.

The survey also found that those who didn鈥檛 have a retirement plan had lower financial confidence, were feeling more stressed and anxious and said they had lost sleep due to financial strain, compared with those who had a saving strategy in place.* To better balance immediate family responsibilities with long-term financial goals, working with a financial professional can be a great first step.

How a financial professional can help

Seeking the guidance of a financial professional can help members of the Sandwich Generation navigate the unique demands of supporting aging parents, raising children and saving for their own retirement. With expertise in their field, financial professionals can offer personalized guidance and practical solutions to help you better manage financial priorities and reduce money-related stress. Along with laying out a road map for achieving your goals, they can help:

• Create a realistic budget that helps balance your financial responsibilities 
• Guide productive financial discussions with family members 
• Build a proactive plan that helps manage current responsibilities while preparing for long-term financial goals
• Address financial concerns and discuss possible solutions 
• Explore income strategies, such as annuities, that can provide guaranteed income in retirement
• Offer education and resources to help adult children improve financial literacy and gain independence
• Provide guidance on estate planning for aging parents
• Reduce financial stress by offering flexible strategies and ongoing support through life鈥檚 stages

Survey results revealed that working with a financial professional can help people in this life stage manage the demands of supporting multiple generations. For survey respondents who worked with a financial professional, 90% said it had a positive impact on their financial future and helped boost their confidence. And nearly 70% say they feel more confident in supporting adult children (vs. 53% without a financial professional) and over 60% feel better prepared to provide financial support to elderly relatives.* 

How annuities can add stability to a financial plan

When working with a financial professional, you鈥檒l likely discuss your current financial situation, short and long-term goals and how you picture retirement. If outliving your savings is a concern, your financial professional may discuss adding an annuity to your retirement income plan. Annuities can create a steady and reliable income stream in retirement and provide insurance against the risk of outliving your money. Certain types of annuities can also provide the potential to help further grow your savings.

Adding an annuity to a retirement savings strategy can help:

• Preserve and grow future retirement income 
• Fill income gaps by providing a guaranteed stream of income in retirement
• Supplement other retirement savings tools like 401(k)s or IRAs
• Reduce the risk of outliving your savings
• Bring more stability to your financial plan even during market volatility 
• Boost financial confidence about retirement readiness 
• Leave a legacy to loved ones

Depending on your goals, retirement timeline and risk tolerance, your financial professional may discuss how annuities can help meet different needs. For example, a fixed annuity might be an ideal choice for tax-deferred growth and the opportunity to produce a stable, guaranteed stream of income in retirement. Or a fixed index annuity (FIA) could be a good option for someone seeking growth potential linked in part to market performance with principal protection from loss due to market downturns. Your financial professional can help determine which type of annuity best aligns with your financial priorities and retirement goals. 

Reducing Sandwich Generation stress

Caring for both aging parents and adult children while planning for your own future isn鈥檛 easy, but you don鈥檛 have to tackle it alone. With the right support and financial tools, you can relieve some of the pressure and feel more in control of your financial future.  Working with a trusted financial professional can help you build a personalized strategy that prioritizes your needs, reduces uncertainty and keeps your retirement dreams front and center. With thoughtful planning, you can help meet your family鈥檚 needs today while staying on track for the retirement you鈥檝e always envisioned. 

Want the most from your retirement? Get smarter with Smart Strategies from 黑料社区. Your source for tips, tools and financial solutions that can help you live your best life.

*黑料社区 contracted Harris Poll to survey 1,024 adults aged 40-59 who provide financial support to at least one adult child (aged 18 and out of high school) living in their home without significantly contributing to household expenses, and who provide financial or caregiving support to at least one elderly relative. The survey was conducted between January 2, 2025 and January 19, 2025.

Under current tax law, the Internal Revenue Code already provides tax deferral to qualified money, so there is no additional tax benefit obtained by funding a qualified contract, such as an IRA, with an annuity; consider the other benefits provided by an annuity, such as lifetime income and a Death Benefit. 

Indexed annuities are not stock market investments and do not directly participate in any stock or equity investments. Market indices may not include dividends paid on the underlying stocks, and therefore may not reflect the total return of the underlying stocks; neither an index nor any market-indexed annuity is comparable to a direct investment in the equity markets.

The term 鈥渇inancial professional鈥� is not intended to imply engagement in an advisory business with compensation unrelated to sales. Financial professionals will be paid a commission on the sale of an 黑料社区 annuity.