‘Sandwich generation’ women say caregiving impacts financial goals

Nearly two-thirds of women (64%) in the sandwich generation – those who are caring for both children and parents or relatives – reported that caregiving duties have negatively impacted their ability to save for their financial goals.

This is according to research from Edward Jones, in partnership with NEXT360 and Morning Consult. The research set out to explore women's roles in their families and their finances, and the challenges that come from balancing both.

In addition, more than half (57%) of women have had to take on fewer professional responsibilities due to caregiving, resulting in a loss of potential income. Findings from the survey also showed that the caregiving burden can impact women's personal health and sense of purpose.

"While many women want the choice and ability to have careers, be caregivers and be the CFO of their families, balancing the responsibilities of health, family, purpose, and finances have significant trade-offs," said Vanessa Okwuraiwe, principal at Edward Jones. "Women can often bear the brunt of those responsibilities, including caring for loved ones, as half of all households in the U.S. are now headed by women."

The impact of caregiving

In the study, almost half (46%) of women in the sandwich generation reported that they are the sole caregiver for their children, while 54% said the same for parents or relatives. Additionally, more than half (56%) said that they feel like they do not have enough savings to support those for whom they are the primary caregiver. As such, over the next five years, women in the sandwich generation noted they will remain focused on saving and prioritizing long-term expenses such as caregiving (75%), child education (72%), and healthcare (81%).

Few women have sole responsibility for investments

While women reported that they are responsible for 85% of household spending decisions, far fewer reported the same for investment decisions. In fact, the research showed that less than half (42%) of the women surveyed have sole responsibility for investments in their households, and only a quarter (26%) share that responsibility.

Women in the sandwich generation cited the many demands they juggle daily as the reason for not stepping into the “investment manager” role, with nearly two-thirds saying that if they had more time (65%) with fewer caregiving responsibilities and the help of a financial advisor (51%), they'd be more confident in planning for their financial future.

“Working with a financial professional can help women set their short- and long-term financial goals with a clear path to achieve them," said Mona Mahajan, principal and senior investment strategist at Edward Jones. "Women want a financial professional who gets them, guides them, and can make things easier. In fact, half of the women we spoke with said they believed working with a financial professional would help boost their financial confidence."

What women look for in a financial professional

So, what qualities are women looking for as they work with a financial professional to help them boost their financial confidence? According to the Edward Jones survey, the top qualities women are looking for in a financial professional are someone who understands their financial goals and priorities (64%), is transparent about fees and charges (58%), and has experience in financial markets (57%).

Another report, Empowering Middle-Income Women’s Financial Decisions: Navigating Confidence, Opportunity and Representation in the Financial Services Industry by Primerica, also sheds some critical insights on what women are looking for in a financial professional.
The report uses a wealth of data from Primerica’s Financial Security Monitor (FSM), a quarterly survey of middle-income households’ financial confidence and outlook. In all, the findings represent the collective responses of more than 7,800 women across 15 completed FSM surveys since Primerica began polling middle-income households quarterly in 2020.

Through a series of questions, the survey revealed that women respondents said they mainly seek financial advice from professionals due to their own lack of experience, and they are likely to rely on friends and family for the same reason. In addition, more than half of women surveyed value a financial professional who can relate to their background and understand their life journey.

The Primerica report also shared something that should be of interest to all financial professionals—a whopping 73% of the women surveyed showed no interest in robo advisors, while 1.7% said that they had tried a robo advisor and were dissatisfied with the experience.

Edward Jones, in partnership with Morning Consult and NEXT360 Partners, LLC, conducted a mixed-methods study combining a nationwide online survey (fielded between June 18 – June 26, 2024) executed by Morning Consult (among a U.S. national sample of 5,998 adults reflecting the demographic profile of the United States), combined with interviews and discussion groups with 43 women between the ages of 25 and 71, conducted in June 2024 (interviews) and July 2024 (discussion groups).

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