By Joe Dyton, WCI ContributorThe sandwich generation consists of people, typically middle-aged adults, who take care of both their children and aging parents. The name comes from the fact that these individuals are “sandwiched” between their kids and parents when it comes to care. For children, the care is standard—shelter, financial, emotional, and physical support. Looking after one’s parents often includes financial help, but they also may need support when it comes to their health and accomplishing day-to-day tasks.
Different circumstances can make being in the sandwich generation more challenging. For example, some children need additional financial support as they enter adulthood. Physicians might spend their working hours caregiving, but the act doesn’t necessarily stop once their shift ends. They could also find themselves taking care of children, which brings its own set of challenges from an emotional and financial standpoint. While the challenge of balancing parenting and working isn’t a new one, it could become more difficult for physicians who find themselves looking after their children and their aging parents.
The responsibility of caring for two generations of loved ones brings on many stresses for anyone in this position, including physicians who’ve made a profession of taking care of others. Let's talk more about the sandwich generation, the financial and emotional burden that being in this generation has on physicians, and financial strategies that can be applied to ease the pressure of supporting parents and children at the same time.
What Is the Sandwich Generation?
Half of parents in the US will provide their children who are 18 or older with some sort of financial assistance in 2025, according to a recent Savings.com report. Meanwhile, it’s become more common for adult children to live with their parents longer.
The sandwich generation concept is becoming more commonplace as people are living longer—1 in 6 people are expected to be 60 years old or older worldwide by 2023, according to the World Health Organization. Now, more than half (54%) of Americans in their 40s find themselves in the sandwich generation, according to a Pew Research Center survey.
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Helping Your Parents Financially
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Financial Considerations When Taking Care of Your Aging Parents
Why Physicians Are Especially Vulnerable
Being in the sandwich generation can be difficult for any profession, but physicians in this position are often dealt some added weight.
Financial and Professional Burdens
Physicians earn a high income, but it might not go as far if they’re financially supporting children and their parents. Doctors could also still be in medical school debt as they try to take care of multiple family members. There’s also the chance of missed career opportunities. Physicians tasked with caregiving for multiple generations could mean having to turn down more work responsibilities or promotions, which could have led to earning a higher salary.
There’s also job performance to think about. Shouldering so much responsibility at home could lead to fatigue or a lack of concentration at work, which can’t happen when dealing with patients. Professional slipups due to exhaustion could hold back a physician from career advancement.
Managing Expectations
Physicians are counted on—a lot. Patients rely on them for their own well-being, which can be a large enough burden to carry. Add in family members’ needs, and being there for everyone can take its toll on even the most resilient doctor. Challenges in this regard could include trying to attend children’s events and parents’ doctor’s appointments while still managing to have a social life of your own.
Along with providing time, physicians in the sandwich generation are often expected to provide financially for their children and aging parents, too. Such expenses include traditional needs for young children (clothes, food, activities, etc.), helping parents pay for medical care, and potentially housing and assisting adult children with their bills.
Emotional Wear and Tear
Working as a physician in the sandwich generation can also be mentally taxing. Doctors often work long hours, depending on their specialty. A demanding work schedule can cut into time spent caring for children and parents and vice versa. This can be stressful. Plus, physicians spend their days (and possibly nights) caregiving for their patients, which continues once they get home for kids and parents. The non-stop caregiving cycle at work and home can take a mental toll on physicians, which can lead to physical and mental burnout. There’s also the possibility of physicians feeling guilty for not being there enough for their loved ones because they’re working so much.
Common Financial Challenges for Those in the Sandwich Generation
Covering costs for a household with children can be challenging enough. The degree of difficulty only increases when parents’ financial needs are added to the bill. Generally, a physician’s family expenses include housing, transportation, food, education costs (saving for or paying a child’s college tuition), and retirement savings.
These expenses can be costly—even on a physician’s salary. Once parents’ expenses are added in—such as helping pay for their housing, medical expenses or long-term care—that salary gets stretched even further. Depending on where a physician is in their career, they could possibly pay for both generations comfortably, but there could still be a mental struggle to consider. Consistently debating how much to save for retirement vs. paying for the needs of multiple generations or managing family finances in general can wear down even the most financially successful physician emotionally.
More information here:
Living Our Lives in a Dual-Physician Income Household
How Our Plan to Start a Family Affects Our Quest for Financial Independence
Financial Strategies If You Are in the Sandwich Generation
Finding financial success as someone in the sandwich generation can be difficult, but it isn’t impossible. It can be done with some planning, research, and prioritizing. Here are some financial strategies for physicians in the sandwich generation:
- Look for support: You may not have to foot the bill for your aging parents yourself. Check out any state or federal programs that offer support for caregivers of elderly dependents. Such programs could assist in paying for in-home assistance. Plus, if your aging parent is considered a qualified dependent, you may be eligible to contribute additional money to a workplace Flexible Spending Account or Health Savings Account. These accounts provide tax advantages that could be put toward qualifying medical expenses.
- Prioritize your retirement: With so many expenses between caring for your children and parents, it can be tempting to reduce your retirement contributions. You should avoid this temptation because, at some point, you’ll probably want to stop working and will need those retirement funds to do so. Otherwise, you might end up putting your children in the middle of another sandwich generation. Contribute to your employer’s retirement plan and other investment avenues, such as an Individual Retirement Account (IRA), the best that you can.
- Set boundaries: Be upfront with your children and parents; you’re doing your best to support both generations, but there’s a limit on how much you can do. This gives them realistic expectations of the financial and emotional support you can provide.
- Plan ahead: As a physician in the sandwich generation, you have a lot of people depending on you. You should ensure your finances are in order in the event something happens to you. This includes reviewing your life and disability insurance policies as well as your long-term care coverage.
- Speak with an expert: Consulting with a financial planner or advisor could help you develop a money strategy that addresses your specific situation. A professional could also assist in reviewing your budget, spending, and savings goals and ensure you can meet your financial obligations to your family while saving enough for retirement.
The Bottom Line
Being a physician is a demanding profession. The demand compounds for physicians in the sandwich generation who are caring for their children and parents. While handling so much at work and home can be daunting, it’s possible to manage with the right financial plan in place. If you’re unsure about how to best support multiple generations and yourself, don’t hesitate to seek professional financial help.
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