Ways to support a sandwich generation caregiver

3 ways to support sandwich-generation caregivers

March 10, 2022 1:52 PM

Caregiving is a big enough job, yet for employees caring for multiple generations, each day comes with double the challenges and ballooning costs.

Sandwich caregivers care for both children and older individuals, like aging parents or relatives. Around 12% of the population are part of the sandwich generation, according to the Pew Research Center. On average, caregivers spend around a quarter of their income on caring for their relatives, according to AARP.

Sandwich caregivers have unique needs and unbelievable financial strain — which has only gotten worse during the pandemic, says Jessica Tuman, head of Voya Cares, which provides caregivers with financial planning support.

“Sandwich caregivers are stuck between getting their kids to school and paying for that, and dealing with their aging parents,” Tuman says. “All of this is incredibly expensive, yet it’s something that people don’t understand or aren’t aware of until they’re at this point.”

These costs can quickly spiral out of control, as many sandwich-generation caregivers are caring for relatives with special needs that may require more extensive care, Tuman says. For example, adult day care can cost upwards of $20k per year, and nursing services can cost around $55k per year, Tuman explains. Caring for children with disabilities, like autism, can cost parents between $1.4-2.4 million dollars up to the age of 17, according to data from Autism Speaks, an advocacy group.

“Sandwich caregivers are dealing with very overwhelming financial situations,” Tuman says. “There's just no way to stay on top of these costs and when it comes to things like retirement or financial stability, they're just putting that on the back burner in order to care for these more immediate needs.”

To help employees get a better handle on their finances and tend to their own well-being now and in the future, Tuman lays out three benefits employers can offer to ease the strain:

Supplemental benefits

Tuman says employers should mine their supplemental benefits to find options that will best support caregivers. Offering things like long-term care insurance could be a good way to ensure an employee is planning for their own health needs in the future.

Additionally, programs like caregiver concierge services can provide employees some relief from the logistical responsibilities they face day-to-day. Additional benefits like emergency back-up care can also fill in the gaps when an employee is struggling, so they can focus on work and avoid leaving the workforce altogether.

“So many caregivers are so overwhelmed by their responsibilities that they quit their jobs entirely,” Tuman says. “That's the last thing you want for the employee. These are things that can be really helpful in an acute situation for these caregivers.”

Leave management and PTO

If an employee does need to take a leave of absence to care for their loved ones, managers should be trained on leave management and offer flexible work arrangements to keep them connected to their career, Tuman says. Some companies also allow employees to pool PTO, so those who need it most can take advantage of extra time without it impacting their work.

Tuman says companies can also outsource leave management to companies who can better navigate state and federal regulations, making it easier for employees to take the time they need.

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“Leave management is very complex, so outsource that to specialists who can manage it for you,” Tuman says. “The most important thing for caregivers is to retain that job and retain all the benefits they have access to.”

Financial support

Providing benefits like student loan repayment or debt forgiveness programs can help caregivers cross one thing off their balance sheets, Tuman says. This can also help them use that money toward their own retirement savings. Employers should ensure employees are taking advantage of their 401(k) plans and other retirement savings vehicles.

Employers can also help employees build up their emergency savings, in order to avoid costly retirement savings withdrawals. Safeguarding their savings can help sandwich caregivers tend to their own financial needs, without sacrificing everything, Tuman says.

“We’re all going to age and we're all going to get some kind of disability in our older age,” Tuman says. “We need to care for ourselves, too, and plan more around that.”