You've probably heard of the sandwich generation. It’s a term that pops up a lot online, whether from financial content creators or lifestyle posts. But do you know what it really means and how to break free from it? Let’s break it down:
The sandwich generation refers to people who are financially responsible for both their aging parents and their children at the same time. For instance, if you’re in your 30s, you might be paying for your young kids’ needs while also supporting your retired parents.
It’s called the sandwich generation because, like a sandwich, the productive (nutritious) part—represented by the meat and veggies—is squeezed between two slices of bread, symbolizing the non-productive generations (your kids and parents). Even though it can be exhausting, this situation isn’t permanent. Keep reading to find out how to break free from it.
There are several reasons why the sandwich generation exists. Here are a few:
In many Eastern countries, like Indonesia, it’s common for children to care for their parents when they are old. Even if the parents only have one or two children, one of them is usually expected to live with and care for them until their twilight years.
Back in our parents’ generation, many people got married in their early 20s or even in their teens. This meant that when they had children, their parents were still in their 40s and didn’t require much care. Nowadays, many people don’t get married until their late 20s or early 30s. So, when they have children, their parents are already reaching retirement age. As a result, they have to bear the economic burden—and sometimes the moral obligation—of caring for both their children and their aging parents.
Advances in healthcare have also contributed to the rise of the sandwich generation. With better healthcare facilities and access, life expectancy has increased, and infant mortality rates have decreased. In Indonesia, for instance, according to the BPS, the average life expectancy for women is expected to reach 74.18 years by 2024, compared to 72.22 years in 2010—a two-year increase.
Besides early marriages, financial education wasn’t as widespread in our parents’ time as it is now. As a result, many didn’t prepare for retirement or get insurance, and they viewed their children as an investment. Now, it’s their children who are left to support them, trapping them in the sandwich generation.
Being part of the sandwich generation isn’t easy—you have to support both your parents and your kids. That’s why it’s important to break the cycle. Here’s how:
Two key mindsets need to shift. First, the idea that children are an investment, and second, the belief that living in a retirement home is terrible. Remember, while it’s true that culturally and religiously, children should honor their parents, it doesn’t mean they have to meet all your needs in old age. Similarly, living in a retirement home doesn’t mean your children have abandoned you; it might be the best option to ensure you get the care you need without overwhelming them.
Insurance isn’t just about BPJS. There are many types of insurance with benefits for old age. For example, critical illness insurance can cover you in case of a stroke or if you need dialysis, and life insurance can provide for your family if you pass away, covering funeral expenses and other costs.
The most important way to break free from the sandwich generation is by preparing a retirement fund. Nowadays, there are plenty of financial tools you can use to save for retirement, such as stock mutual funds, long-term government bonds, and even Financial Institution Pension Funds (DPLK). To start, you need to calculate your retirement fund by considering your monthly expenses and inflation rates.
If you use the Honest App, you can easily track your Honest credit card spending both online and offline, making it easier to figure out how much money you need to save for retirement. The Honest App offers a high credit limit and a 0 percent installment credit card, so you don’t have to stress over your expenses. Plus, this credit card comes with many benefits, like 0 percent installments, buy-now-pay-later options, and a single admin fee, making it easier to manage your finances.Saving for a retirement fund to break the sandwich generation cycle isn’t easy, but it’s doable. As long as you’re diligent in saving and investing, you’ll reach your retirement fund goals.
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