Caught In The Middle: India's Sandwich Generation Struggles With Financial Insecurity And Increased Emotional Distress

Adults in their late 30s to 50s who are simultaneously supporting their ageing parents and raising children, all while struggling to secure their financial future.

On most mornings, 42-year-old Rahul Bhargava begins his day with a never-ending to-do list. Juggling between his full-time job at a corporate firm in Gurugram, ensuring his ageing parents have their medications, and helping his teenage daughter finish her homework and prepare for exams, he barely finds a moment for himself. Financially, things are even more overwhelming: his father’s recent medical expenses have exhausted the family's savings, his daughter's school and tuition fees are increasing annually, and with little left for his retirement years, he often wonders, "What about myfuture?"

Welcome to India's growing Sandwich Generation: adults in their late 30s to early 50swho are simultaneously supporting their ageing parents and raising children while struggling to secure their own financial future. With rising healthcare costs, educational expenses, and inflation eating into salaries, at least 60% of this generation feel unprepared and financially stretched thin. A prime depiction of this generation on the screen was seen in the OTT show, Family Man. Actor Manoj Bajpayee plays Srikant Tiwari, a middle-class man who secretly works for a special cell of the National Investigation Agency and is torn between the demands of his wife, teenage children and senior parents.

This generation is struggling to manage caregiving to the elderly and their children's education (Getty Images)

The recent Edelweiss Life Study notes that India's Sandwich Generation feels unprepared for its future. The study shows that 60% of respondents agree that no matter how much they save or invest, it's never enoughfor the future.

"The Sandwich Generation is living in a continuous loop of caring for their parents as well as children. They want to enable the essentials like healthcare and education while providing an aspirational life where ‘needs’ don’t come at the cost of ‘wants.’ This is driving their financial decision-making. In the process, they often end up relegating their own dreams to the background, leaving them feeling like they are unprepared for the future," says Sumit Rai, MD and CEO, Edelweiss Life.

With their duty and love for family driving financial decisions, our study indicates financial misalignment or money dysmorphia within this generation (simply put, money dysmorphia is feeling unhappy about one’s financial situation).Over 50% agree with varying statements including worrying about running out of money, always feeling behind and that they are not doing well.

Burden of Dual Responsibilities

The term 'sandwich generation' was first coined to describe those caught between caring for both, their elderly parents and their dependent children. In India, where familial responsibilities run deep, this group faces even more challenges. Unlike the West, where social security pension schemes provide some financial relief, most Indians rely on personal savings to fund not only their parents' medical expenses but also their children's education. One major health crisis in the family, and the savings go back to almost from where it started.

"My mother was diagnosed with leukemia in 2019 and it took away my entire savings. I took a loan on my home and I am still paying it off. She has huge medical expenses as part of her regular post-recovery cancer checkups. I have a four-year-old son, whose education costs me so much that I am left with little monthly savings," says Bhavna Sharma, who is a single mother and works in a corporate firm.

According to a recent survey by a financial consultancy firm, nearly 65% of working professionals in their 40s feel they are not saving enoughfor their retirement. Many are withdrawing from their savings or taking loans to meet their expenses. "Making my future financially stable is uncertain for me. I have already withdrawn money from my provident funds twice. My savings are exhausted. I have two daughters and both are in a very basic school which doesn't have comparatively high fees, but it's still not enough; my parents are growing old, so some or the other medical condition keeps popping up," says Sarvesh Vyas, a state government employee.

Adults in their late 30s to 50s who are simultaneously supporting their ageing parents and raising children (Getty Images)

Atool Sinha says that proper financial planning helped him avoid a financial crisis. "My parents are my responsibility, and my child needs me, so I had to plan my life accordingly. I knew I could provide a good education to one child, so I decided not to have another. I secured my family with medical policies to cover health expenses. Initially, I struggled, but I was vigilant about my spending," says Sinha. While it is easier said than done, many of us struggle to plan our finances like Sinha and face the stress of managing everything on a single income.

Mental And Emotional Toll

While some feel that all responsibility lies on the man of the house, women of this generation are also struggling to secure their future. Balancing work, caregiving, financial stress and anxiety are overwhelming both genders equally.

Delhi-based clinical psychologist Shruti Mokashi says that constant juggling between many roles leaves little room for self-care. "It leads to high levels of stress. Sometimes, people in the Sandwich Generation feel guilt and helplessness. Many feel they are not doing enough and can't meet everyone's expectations. These feelings can lead to anxiety and long-term stress," says Mokashi.

For some from the Sandwich Generation, stress can affect personal relationships as well. "I barely get time with my wife and children together. By the time I reach home, my children are asleep and when they are off to school, I am still sleeping. My wife and I don't get much time together. We are so consumed with our jobs and responsibilities that we hardly talk about anything but bills and expenses," says Ankit Jhalana, 45-year-old banking professional in Mumbai.

Bhupendra Sharma, a psychologist from Gujarat, suggests setting realistic expectations and seeking external support to alleviate some of the stress. "Caregiving should be equally distributed in the family. It should not fall on one person. Self-care and taking time out for yourself is important," says Sharma.

Manage The Financial Crunch

While emotional support is crucial, strategic financial planning plays a key role in reducing stress for this generation. "Starting early is the key. Plan for long-term over immediate expenses," says Indrani Mahato, a financial advisor in Delhi.

Here are some financial strategies

1. Build an emergency fund: Mahato suggests setting aside at least 6 to 12 months' worth of expenses in a liquid fund to cover unexpected medical costs and emergencies.
2. Health insurance: A strong health insurance plan for parents is important. Relying solely on employer-provided coverage is not advisable.
3. Retirement savings: Even if you are struggling to manage present financial priorities, it is advisable to maintain retirement savings. It is like paying for your future self.
4. Seek professional help: A financial advisor can help create a customised investment strategy which can balance caregiving, education, retirement and your healthcare.

Need For Policy Support

While this "balancing act" of planning finances largely depends on individuals, it is important for the government to ease the burden of the Sandwich Generation. Expanding tax benefits for caregiving expenses, offering better senior citizen healthcare subsidies, and promoting employer-based retirement solutions can make a big difference.

"Until there are smart policies that support middle-class families, most of us will continue to navigate this challenge of balancing responsibilities, managing stress, and planning for a future that seems uncertain," says Mahato.