Many middle-aged adults feel squeezed between raising their children and caring for their ageing parents. This “sandwich” isn’t just financial – it’s emotional, logistical and often career-shaping.
The good news is that we live in a time with clearer information and a richer set of public support system that previous generations mostly didn’t have. With practical steps, families can take care of their parents, while continuing to build towards their own retirements – and make themselves the last generation that’s perpetually sandwiched.
Who Exactly Is “Sandwiched”
The sandwiched generation is loosely defined as adults middle-aged adults between 40 and 60, who have to provide care and financial support to both children and older parents.
The unique stress, including financial, logistical, and emotional, faced by the sandwiched generation can take a heavy toll on families.
One of the biggest problems perpetuating this endless cycle is that adults have to spend a large part of their savings bringing up their children, as well as taking care of their parents. Such a family dynamic may also require career sacrifices, working less demanding (and lower-paying) jobs or having one spouse step out of the workforce. This may lead to not having enough for retirement themselves – which then puts their children in the new sandwiched generation.
Why This Problem Exists (And Why Parents Weren’t Always Prepared)
Several structural and historical forces created today’s squeeze. Many seniors today may have prioritised raising children and securing a good education and lifestyle for the next generation. In doing this, they may have neglected their own retirement planning.
Affordable financial advice, retirement products, and easy savings channels were less available or less widely used decades ago than they are now. One of the bedrocks of Singapore’s retirement adequacy, the CPF, was itself not as robust for these pioneering generation of Singaporeans.
Today, a longer life expectancy has also increased the length and cost of old-age care. At the same time, young adults often take longer to establish their careers, having to go through formal education years and university, with males also spending 2 more years in National Service.
Today’s smaller households means there are fewer children to support ageing parents, which only makes financial contributions and day-to-day care coordination more stressful than in the past.
Law vs Duty: The Maintenance of Parents Acts vs The Moral Case
Singapore law provides a legal backstop: the Maintenance of Parents Act allows parents to claim maintenance from their children. The Act formalises a responsibility that, culturally, many families have treated as moral duty rather than legal obligation.
But, legal remedies can be blunt instruments – they don’t solve care planning or replace emotional support.
Framing the issue as a legal duty misses the point: many adult children help out because it’s the right thing to do. At the same time, being motivated by duty is better suited to protect the parents’ dignity and family’s long-term financial security.
Public Supports And Safety Nets You Should Know About
Singapore provides a layered set of retirement and eldercare support system that families can tap into – many of which were designed precisely because past generations may have had limited private savings.
You can voluntarily top up your parents’ CPF Special or Retirement Account (and get up to $8,000 more in annual tax relief) to boost their CPF LIFE payouts. This can help to increase their monthly payouts for as long as they live. Doing this can be a good way to support your parents if they are still able to work today by increasing their CPF LIFE monthly payouts when they eventually retire.
National schemes, such as CareShield Life & MediShield, offers basic medical and long-term care insurance to help defray the cost of large medical bills and severe disability. Building a MediSave Account will also increase the buffer for healthcare expenses. In this regard, families can use their MediSave to pay for some of their parents’ healthcare expenses, especially if they have exhausted their own.
Community and subsidised eldercare services, spanning the AIC (Agency for Integrated Care), Active Ageing Centres (AAC), home-care programmes, exist across Singapore to help seniors age in their neighbourhoods and offer some respite for caregivers. These services include day-care, home personal care and respite options — often subsidised for eligible families.
Playbook For The Sandwiched Generation (And Avoid Being In The Next “Sandwich”)
To avoid being part of the sandwiched generation, or ensure that you become the last sandwiched generation, there are some practical steps you can take today:
#1 Have an honest family conversation about both money and care-giving needs. You can map your parents’ income, savings, pensions, CPF/SS benefits and recurring expenses. Share this among all siblings and come to an agreement on who handles what (i.e. money, medical appointments, paperwork).
This can formalise sibling contributions (monthly transfers, direct top-ups, joint expense accounts) so one person isn’t carrying all the load. You may also want to consider using written agreements for significant ongoing support to avoid resentment and clarify tax/reporting implications.
You can also ensure that documentations are in place, such as for their will, CPF nomination, and lasting power of attorney (LPA).
#2 Make use of CPF, either by contributing to their Retirement Account to shore up retirement adequacy with lifelong monthly payouts via CPF LIFE. This will also offer tax relief to those who top-up.
You can also be up-to-speed with national schemes such as their MediSave Account, MediShield Life, CareShield Life, and any supplements they may have. This can help you make a more informed decision if they need to be hospitalised or seek medical attention.
#3 Protect against care shocks by dividing up the load between family members early. Elderly parents are not automatically on the current CareShield Life scheme, so you have to further investigate their safety nets, which may be under the older ElderShield schemes or none at all since it was a voluntary participation scheme.
You can also explore home and day-care programmes and respite services to avoid caregiver burnout.
#4 Protect your own retirement savings as a non-negotiable. You already understand the stress you may have taking care of your elderly parents, so you can work to avoid putting the same stress on your children.
Even modest regular contributions can compound powerfully over decades. Ensure that your emergency savings fund is up-to-date, worth 3 to 6 months’ of your essential household expenses – including your caregiving needs.
#5 Consider if you need professional help, especially if you have care-giving needs concerning complex estates or cross-border assets.
Read Also: Beginner’s Guide To Understanding How MediShield Life Works
Make Yourself The Last Sandwich Generation
Many seniors of today may have prioritised their children (i.e. working adults today), under conditions of limited financial options and knowledge. We now have the tools, data and policy to do better – for our parents, and for ourselves and our children.
Planning isn’t just paperwork or about dividing responsibilities. It’s also a moral duty that preserves dignity of our parents in their senior years and prevents intergenerational hardship so oour children won’t inherit the pressure we shoulder today.
Advertiser Message
Thinking Of Switching Brokers Or Consolidating Your Holdings?
Tiger Brokers is currently running a transfer-in campaign where eligible clients can receive an iPhone 17 Pro Max* when they transfer in their assets.
For SGX investors, there is also a CDP Transfer promotion with 0* commissions on Singapore stocks.
Find out more here. *T&Cs apply.
