One of my favorite Presidential candidate policy proposals – that arrived late in the game – was Kamala Harris’ suggestion that Medicare benefits cover home health care for the first time. This felt like it was hatched from the MEA classroom as it’s staggering to know how many of our midlife students are struggling with being in the “sandwich generation.” Here are some stress-inducing stats from a recent Wall Street Journal article.
The sandwich generation has grown to at least 11 million in the U.S., and shifts in demographics, costs and work are making it a longer and tougher slog, especially since we’re having kids later and our parents are living longer. The financial pressures are growing for the sandwich generation. According to a Care.com survey, 60% of U.S. families spent 20% or more of their annual household income on child care last year, up from 51% of families in 2021. Meanwhile, the median cost of a home health aide climbed 10% last year to $75,500.
A 40-something (the average age of these sad sandwich folks – see the graph below) contributing $1,500 a month over five years to support an aging parent stands to lose more than $1 million in retirement savings, according to an analysis by Steph Wagner, national director of women and wealth at Northern Trust Wealth Management. Wow, that’s a staggering stat!
In sum, it’s time that the government recognizes that Americans are exhausted and stretched – emotionally and financially – and they deserve some kind of assistance in navigating the complexities and stresses of being in the sandwich generation.
-Chip