If you’ve felt the push and pull of supporting both your children and your ageing parents, you’re not alone. More Australians than ever are finding themselves caught in the “retirement sandwich”—and it’s time to talk about what that means for your financial future.
What is the “retirement sandwich”?
The term describes the situation where individuals, often in their 40s to early 60s, find themselves financially and emotionally responsible for both older generations (parents) and younger ones (children or grandchildren), all while trying to prepare for their own retirement.
This balancing act isn’t only about money, it affects your wellbeing, work choices, and ultimately the quality of retirement you’re able to achieve.
Why it matters to you
- Savings interrupted – Redirecting funds to family needs can delay or derail your retirement savings.
- Stress and burnout – High caregiving demands take a toll on physical and emotional health.
- Changing plans – Too many people adjust their retirement age or lifestyle out of necessity rather than choice.
- Longevity risk – Supporting others now may leave you short of resources when you need them most.
Six practical strategies to help you regain control
If you find yourself in the “retirement sandwich,” caring for ageing parents while preparing for your own retirement, here are six strategies to help protect both your future and your wellbeing:
1. Prioritise your own financial security
Before overcommitting resources to your parents, make sure your retirement plan is solid.
- Revisit your superannuation, pensions, and investment strategies.
- Use financial modelling to understand how much you can contribute without compromising your independence.
- Set clear boundaries: help your parents, but not at the expense of your future.
2. Set clear boundaries and roles
Caring for parents can quickly become overwhelming without defined responsibilities.
- Agree on the support you’ll provide, such as medical appointments, financial administration, or meals.
- Share responsibilities with siblings or relatives where possible.
- Remember: saying “no” is sometimes necessary to protect your own health and stability.
3. Leverage professional support
You don’t have to do it all on your own.
- Explore government and community aged-care programs (e.g., My Aged Care in Australia).
- Seek help from professionals: financial planners, elder-law specialists, and healthcare coordinators.
- Consider respite care or in-home help to ease day-to-day pressures.
4. Plan for housing and care needs early
Proactive decisions now reduce stress later.
- Discuss with your parents whether they wish to age in place, downsize, or move into assisted living.
- Factor in costs and practicalities for each option.
- Ensure legal documents, such as wills, enduring powers of attorney, and health directives, are in place.
5. Protect your health and lifestyle
You can’t support others if you’re running on empty.
- Maintain healthy routines: exercise, nutrition, rest.
- Make space for your own relationships, hobbies, and social life.
- Seek out caregiver support groups, sharing the load emotionally can be powerful.
6. Integrate, don’t compartmentalise
Instead of treating caregiving as separate from your retirement plans, look for ways to blend the two.
- Combine trips: plan holidays that allow for relaxation while also spending time with your parents.
- Involve your parents in family milestones, so caregiving feels like connection rather than obligation.
- Reframe caregiving as part of your retirement lifestyle, not something that steals from it.
Special considerations for business owners & the self-employed
If you run your own business, the retirement sandwich comes with unique opportunities and responsibilities:
- Super flexibility – You control how much and when to contribute, allowing you to catch up if family demands reduce savings for a time.
- Cash flow management – Tax planning, salary packaging, and company structures can help free up funds for both family support and future goals.
- Succession planning – Ensuring your business can generate income without your full involvement protects both your family and your retirement.
- Risk management – Being in charge also means being accountable for investment and longevity risks, professional advice can help tailor strategies to your business cycle and personal needs.
For business owners, the retirement sandwich is not just personal, it’s professional. Aligning your business strategy with your personal retirement goals early can make all the difference.
You can reclaim your retirement
The “retirement sandwich” is real, and it’s impacting more Australians than ever. But it doesn’t have to derail your future. With clarity, strategic planning, and the right support, you can:
- Safeguard your long-term independence
- Support your loved ones without sacrificing your future
- Retire with confidence and not regret
This is your call to action: reassess your plan, elevate your needs alongside your family’s, and take back the driver’s seat of your financial future.
At q4 financial, we specialise in helping professionals, business owners, and families navigate these complex challenges. Book a call with our team today and let’s design a strategy that supports both your family now and your retirement tomorrow.