In generations past, by the time you reached your 50s, life had settled into a manageable rhythm. The children were grown, the mortgage was paid off (or close to it), and you felt financially stable in a job that offered a predictable pension.
Today, it’s a different story. Increasingly, people in their 40s and 50s, even those who are well-off, are stressed out. They’re part of a new sandwich generation that’s feeling squeezed emotionally and financially.
Introduced in 1981 by social worker Dorothy Miller, the concept of the sandwich generation originally described women in their 30s and 40s “sandwiched” between caring for both their growing children and aging parents. In recent years, though, a shift in demographics and an uncertain economy have expanded the sandwich generation and the challenges it faces.
The Numbers Have Shifted
According to a 2026 Pew report, 54% of Americans in their 40s and 45% in their 50s are in the sandwich generation. And 61% of those in their 50s have supported an adult child.
It’s not simply a matter of writing the occasional check or helping with a recent graduate’s finances. In recent years, with housing costs climbing, the cost of living rising, and the job market struggling, many adult children are still living with their parents.
- According to the Federal Reserve’s July 2026 Report on the Economic Well-Being of U.S. Households, 49% of adults ages 18 to 29 now live with their parents — up 12 points since 2019.
- Roughly 18% of the population now live in multigenerational households.
Along with housing their adult children, many parents are also bringing their aging parents into the home. Almost one-fourth of Americans provide financial support to aging parents.
What This Means for a Client’s Larger Financial Picture
In addition to being an emotional stressor, being in the sandwich generation brings increased financial pressure and complexity — which only adds to the stress and anxiety. Picture a client who is dealing with all of the following (and possibly more):
- A mother’s cognitive decline
- A father’s ongoing healthcare
- A daughter’s graduate school
- A son’s first-home down payment
- At least one of those adult children living at home
- A family business in transition
- An inheritance
- Grandchildren
- Charitable intentions
All of it is layered on top of their own day-to-day financial responsibilities and planning for a retirement that’s quickly approaching.
Time, patience, and capital are all stretched thin. From a financial perspective, money is moving in multiple directions across the family, often simultaneously, creating a multigenerational capital-allocation problem.
So how do you build a plan and portfolio for this new reality? Start by recognizing that the portfolio is only one part of the problem.
Planning Needs to Account for More
When several generations depend on the same pool of wealth, every decision can affect another. Helping an adult child with a home purchase may change retirement projections. Caring for a parent may affect cash flow. A business transition can reshape taxes, estate planning, and investment decisions. An inheritance may create new opportunities and new responsibilities.
That means the planning process has to account for more than investment returns. It needs to identify:
- Which resources are available for which purposes
- What needs to remain protected
- Where flexibility is needed
- How today’s decisions could affect the family years from now
The portfolio should follow that plan. Different assets may have different jobs based on time horizon, liquidity needs, taxes, risk, and the family’s broader objectives. Just as importantly, investment decisions need to be coordinated with retirement planning, estate planning, tax strategy, business interests, charitable giving, and the other professionals involved.
For families in their 40s and 50s, the goal is not to perfectly predict which family need comes next. You probably can’t. The goal is to build a financial structure capable of adapting when it does.
Answering the Need for Consideration and Coordination
The sandwich generation isn’t a new concept, but it has evolved alongside societal and economic changes. It could be argued that its challenges have been compounded by the added financial responsibilities being taken on by those in their 40s and 50s.
Previously, people’s financial lives would often simplify as they transitioned from raising children to the peak earning years of their 40s and 50s. Many became empty-nesters with career success and capital, downshifting from raising young children and gearing up for planning their retirement. A number of factors — from changing demographics to turbulence in the housing and job markets — have complicated that narrative. As a result, today’s financial planning requires more consideration and coordination of all the factors that impact a person’s life, particularly those sandwiched between supporting grown children and aging adults.
BentOak Capital is built to help with that level of coordination across generations, goals, and the professionals involved. If your family’s financial picture has you sandwiched, connect with our team to talk through what a plan built for that reality could look like.
IMPORTANT DISCLOSURE INFORMATION: Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by BentOak Capital [“BentOak”]), or any non-investment related services, will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. BentOak is neither a law firm, nor a certified public accounting firm, and no portion of its services should be construed as legal or accounting advice. Moreover, you should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for personalized investment advice from BentOak. Please remember that it remains your responsibility to advise BentOak, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. A copy of our current written disclosure Brochure discussing our advisory services and fees is available upon request at www.bentoakcapital.com/disclosure. The scope of the services to be provided depends upon the needs of the client and the terms of the engagement. Historical performance results for investment indices, benchmarks, and/or categories have been provided for general informational/comparison purposes only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results. It should not be assumed that your account holdings correspond directly to any comparative indices or categories. Please Also Note: (1) performance results do not reflect the impact of taxes; (2) comparative benchmarks/indices may be more or less volatile than your accounts; and, (3) a description of each comparative benchmark/index is available upon request. Please Note: Limitations: Neither rankings and/or recognitions by unaffiliated rating services, publications, media, or other organizations, nor the achievement of any designation, certification, or license should be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if BentOak is engaged, or continues to be engaged, to provide investment advisory services. Rankings published by magazines, and others, generally base their selections exclusively on information prepared and/or submitted by the recognized adviser. Rankings are generally limited to participating advisers (see link as to participation criteria/methodology, to the extent applicable). Unless expressly indicated to the contrary, BentOak did not pay a fee to be included on any such ranking. No ranking or recognition should be construed as a current or past endorsement of BentOak by any of its clients. ANY QUESTIONS: BentOak’s Chief Compliance Officer remains available to address any questions regarding rankings and/or recognitions, including the criteria used for any reflected ranking.