Don’t let caregiving derail your clients’ retirement

Nearly one-quarter of U.S. adults (23%) are members of the Sandwich Generation, and this generation may be the next wave of America’s retirement crisis.

Patti Hausherr, vice president/sales strategy leader at Athene, described what advisors must know about caregiving and how it can derail retirement planning during a webinar by the National Association for Fixed Annuities.

Caregiving’s impact on retirement is “very significant,” Hausherr said. Athene’s research on the Sandwich Generation found 73% of those surveyed said supporting their family significantly impacted their retirement goals. Other survey results showed:

• 44% are reducing their expenses to accommodate their family members’ needs.
• 34% are planning to delay retirement.
• 22% are using their retirement assets to support their family members.
• 9% said they will not retire at all.

“The impact that caregiving is having on our own retirement is very significant,” Hausherr said.

Caregivers tend to approach their retirement challenges in one of three ways, she said.

1. Recognize and tackle the challenges head-on.
2. Don’t know they have challenges because of a blind spot.
3. Avoid challenges completely.

Advisors must pay attention to caregivers in the second and third buckets, she said, “because these are the clients and prospects that you will want to raise the conversations with.”

How working with caregiving clients can boost your practice

Positioning yourself as a thought leader and connecting your caregiver client to resources can help you grow your practice, Hausherr said. Doing so will help an advisor

1. Retain the clients they already have. Hausherr said clients typically can have up to six different advisors, but when they approach retirement, they usually consolidate to one advisor. You want to be that one advisor.
2. Recruit more business, such as life insurance and assets under management, from clients.
3. Protect generational wealth. “The client’s adult children will get a front-row seat to see how you help their parents tackle the challenges in their lives,” she said.

Why is caregiving different today?

Caregiving has always existed, so what makes the situation different today? Hausherr pointed to several factors.

• The move from pensions to 401(k) plans means that more workers are responsible for funding their own retirement.
• Last year – 2025 – saw the greatest annual increase in health care costs in 15 years.
• Fewer families have a stay-at-home member to perform caregiving tasks.

This has impacted two-income households, she said, with individuals often having to cover increased caregiving expenses, cut back on work hours to care for loved ones, or leave their jobs entirely to focus on caregiving.

In addition to caring for young children and older family members, the Sandwich Generation often finds itself supporting grown children.

Hausherr said that in 2025, 69% of the Sandwich Generation had one adult child living at home, 96% financially supported adult children, and 79% managed all or a portion of their grown children’s debt.

Although a large percentage of adults support their adult children financially, they don’t want their children to do the same for them down the road. Hausherr said that Athene’s research found “having to rely on adult children for financial support” was one of the top 3 concerns that members of the Sandwich Generation have over their future retirement, behind maintaining their standard of living and not having enough assets to retire.

Working with an advisor helps

Ninety percent of Sandwich Generation members who work with a financial professional said the relationship has had a positive impact on their financial future, Hausherr said. Sandwich Generation caregivers who work with a financial professional are:

• Likely to have a retirement plan.
• Prepared to support their children in college.
• Confident in providing for their adult children as well as their older family members.
• Likely to help adult children manage debt.

Hausherr presented five tactical ideas for advisors to help Sandwich Generation members support their loved ones and themselves.

1. Broaden conversations. Being present, taking notes and asking TED (tell, explain, define) questions will build trust with clients.
2. Identify potential caregiving expenses. Caregivers in the Sandwich Generation spend an average of $7,075 a month on expenses such as medical, household, daily living, personal care, legal costs and logistical costs.
3. Identify caregiving resources. Many governmental and nonprofit organizations can provide help to those caring for older family members.
4. Expand your centers of influence. Build relationships with elder care attorneys, long-term care specialists, dementia medical specialists, occupational therapists, geriatric care managers and end-of-life specialists.
5. Inspire adult children to achieve financial independence. Advisors can hold seminars or events, facilitate a conversation, provide budget worksheets and encourage clients to create a parent-child agreement to set goals for becoming independent.

© Entire contents copyright 2026 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.