60% Of India’s Sandwich Gen Feels Financially Unprepared: Study

Balancing parents’ care, children’s future leaves many worried about own security

India’s Sandwich Generation that is adults aged 35-54 who financially support both ageing parents and growing children—struggles with long-term financial security, according to a study by Edelweiss Life Insurance in collaboration with YouGov. The survey, covering 4,005 respondents across 12 cities, found that 60 per cent of participants felt their savings and investments were never enough for the future.

The study highlighted a sense of financial inadequacy, with over 50 per cent of respondents expressing concerns about running out of money and feeling they are falling behind financially. Many in this demographic prioritise essential needs like healthcare and education, but also aspire to provide a better quality of life for their families.

Sumit Rai, MD and CEO, Edelweiss Life Insurance, noted: “The Sandwich Generation is caught between fulfilling family responsibilities and securing their own future. While they believe they are financially prepared, many struggle to maintain long-term investments, often liquidating them early for both critical and non-essential expenses.”

Investment Gaps And Rising Credit Dependence

The study revealed that less than 60 per cent of respondents had active investments in life insurance, health insurance, mutual funds, equities, or fixed deposits. Moreover, many failed to persist with their investments beyond 1-2 years, prematurely liquidating funds earmarked for specific goals—sometimes for essential expenses like healthcare, but also for discretionary spending such as vacations and festivals.

Despite 94 per cent of respondents engaging in some form of financial planning, 64 per cent relied on credit to meet short-term expenses, while 49 per cent dipped into savings. Looking ahead, 79 per cent expected to fund their long-term aspirations through investment returns, while 71 per cent relied on future income.

Interestingly, retirement emerged as one of the top three long-term aspirations, indicating that this generation is aware of the need for financial stability post-retirement but faces challenges in building a secure corpus due to competing priorities.