logo

Menu Display

Who are the Sandwich Generation? 

Aged 35-54, this generation is tackling dual responsibilities while prioritizing family over self. Relying on credit, depleting income, and dipping into investments early for short-term needs, they are risking long-term  security- fuelingfuelling a sense of 'money dysmorphia*,' where no amount feels enough.

*Money Dysmorphia, simply explained, is feeling unhappy about one’s financial situation 

Top 3 dreams & aspirations reflect their focus on family over self 

The sandwich generation is often compelled to focus on short-term aspirations over long-term aspirations. This is a natural outcome of their prioritization of family over self. Their family’s current needs usually end up superseding long-term plans, especially if those long-term plans are more self-focused (like retirement or personal vacations).
 

Short term Vs Long term

They are confident planners

This generation displays high level of confidence in their financial planning, with 94% respondents saying they have either created a detailed plan or have done some degree of planning. Additionally, a majority believes that the financial instruments they have purchased as a part of their financial plan are linked to a specific aspiration. 

Top 5 preferred financial products

Staying invested: The struggle is real

It is concerning that barely 60% of people in this generation have ever owned products for each of these categories. When these data points are examined in the context of this generation’s confidence in their financial knowledge, a misalignment emerges in how they invest to achieve their aspirations.

Yet, the penetration level within these categories is low and their intent to stay invested is even lower. They have also prematurely liquidated these investments, meaning accessed them before their pre-defined aspirations were met. While critical needs like healthcare and education have driven this decision, non-critical reasons like vacation, festival season, home renovation, etc. have also contributed.

Funding their aspirations

Money Dysmorphia: the feeling of never having enough  

The Sandwich generation is caught in a constant tussle between providing for short-term aspirations and planning for long-term ones. This generation, while understands the importance of longer-term aspirations, is also keen on providing a life of abundance to their children, and ensuring that their parents don’t have to forego of their desire to enjoy life through travel and a better standard of living. They also want to ensure that critical needs are met, and for that they are willing to access any form of financial assistance available, even at the risk of developing a high credit reliance. It has also led them to dip into their investments, that have been done with a pre-defined aspiration.  

No wonder then that they end up associating with feelings of “not doing enough” despite doing their best to earn, save and invest for a secure future. This highlights a money dysmorphia within this generation, wherein they are constantly stuck in a struggle between their mind and heart, which eventually leaves them feeling broke, unprepared, stressed out about their finances despite meeting all the intended aspirations for their family.                                                                         

                                                                                                                                                                                                                                                                                  ARN. NO : WP/4115/Feb/2025

Asset Publisher