India’s Sandwich Generation Struggles With Financial Pressures

India’s sandwich generation, balancing responsibilities for both aging parents and children, faces financial stress despite being key economic contributors, according to the Edelweiss Life Insurance study

India’s sandwich generation—aged 35 to 54 who financially support their children and aging parents—is facing growing financial stress. Despite being the backbone of the economy, many in this demographic struggle with debt, feel financially unprepared, and experience a constant sense of falling short.

According to a study of 4,005 individuals by Edelweiss Life Insurance, 46 per cent worry about their children’s education costs, while 43 per cent are concerned about future healthcare expenses. More than one-third (39 per cent) cite lack of work-life balance as a pressing issue, and an equal percentage are anxious about their parents’ declining health. While 58 per cent of women have left their jobs or been unemployed at some point due to caregiving responsibilities, financial planning remains a challenge for both genders.

Reliance on credit is high—37 per cent use loans, credit cards, or buy-now-pay-later schemes to fund short-term aspirations. At the same time, 35 per cent struggle with outstanding credit card dues. While many aim to retire comfortably, 62 per cent feel they are not doing enough to meet their long-term financial goals. Even those who have invested in financial instruments often withdraw funds prematurely for urgent expenses like healthcare, education, or home renovation, disrupting wealth-building efforts.

Despite these challenges, India’s sandwich generation plays a vital role in the economy. They are major contributors to the Rs 372-billion healthcare sector and the Rs 117-billion education market. Their spending habits fuel demand in real estate, retail, and technology, shaping key consumer trends. Additionally, 94 per cent have some degree of financial planning, though execution gaps remain.

While they prioritise family needs over personal goals, this generation also aspires to travel, improve their living standards, and achieve financial security. However, their current reliance on credit and cash, coupled with a lack of proactive investment planning, threatens their long-term financial stability.