1.8 million Gen X Canadians are ‘sandwich generation’ caregivers — and most are sacrificing their retirement savings to do it

If you have kids, your accounts might be stretched across day-care costs, Registered Education Savings Plan (RESP) contributions, or a budget that’s suddenly ballooned because your adult child has moved back home.

These are the hallmarks of the sandwich generation — a term for those who are simultaneously caring for their own children and their aging parents. And for many Gen X Canadians, the weight of that dual-caregiver role is becoming quite burdensome.

Juggling too much

Let’s take a hypothetical situation: Imagine Beth, a 50-year-old single mom to two kids, ages 24 and 18. Although she earns about $80,000 a year, she struggles to manage all her expenses.

On top of mortgage payments, her home insurance and extended health care costs have climbed recently, along with utility and grocery bills. Beth’s oldest child finished university, but has struggled to find work and has moved back home. The youngest just started university in the fall, and Beth worries she won’t be able to offer much financial support.

Then, last fall, Beth’s parents — both 75 — moved in after a medical issue that left her mom with limited mobility. Her parents receive both Canada Pension Plan (CPP) and Old Age Security (OAS) benefits, but have few other assets or retirement savings. As of January 2026, the average CPP retirement pension for new beneficiaries is $925.35 per month, and the maximum OAS pension for those 75 and older is $817.36 per month (1, 2) — though what seniors actually receive depends on what they contributed throughout their working years and how long they’ve lived in Canada.

Beth isn’t sure how to raise the subject of finances with her parents. Currently, she’s spending more than ever before, but they haven’t offered to help pay for anything — not even groceries.

Savings takes a backseat

Beth isn’t alone. According to Statistics Canada’s 2024 report, 1.8 million Canadians, or 13% of all unpaid caregivers, were part of the sandwich generation in 2022 (3). That figure covers people looking after both children and adults with a long-term condition or disability.

The toll these responsibilities have on caregivers is significant. The StatCan report found that 86% of sandwich caregivers said their responsibilities negatively affected at least one aspect of their health and wellbeing. Two-thirds (66%) of non-retired sandwich caregivers said their duties had affected their employment, including reduced hours, adjusted schedules or missed career opportunities.

Meanwhile, a 2024 study by HomeEquity Bank and Ipsos Canada found that 70% of sandwich generation Canadians worried about the economic burden of supporting both their parents and their children (4). What’s equally striking is 71% said they would need professional financial planning advice to help them support all their caregiving responsibilities.

Putting your own financial wellbeing on the back burner can have serious consequences — especially in the years typically considered to be your high-earning phase of life. If you find yourself in a scenario like Beth’s, it’s important to take action before the financial pressure becomes unmanageable.

Steps to getting back on track

The first step is getting an accurate picture of your financial situation.

If you’re in a position similar to Beth’s, this means doing a thorough audit of your spending. Look at monthly expenses since your parents moved in and compare that to the same period a year ago. If you don’t typically track expenses, examining bank and credit card statements, utility bills and any receipts for health-related expenses can give you a useful snapshot. Remember to factor in inflation when comparing year-over-year figures.

Once you have a clear picture, it’s time to have an honest conversation with your family. It may be uncomfortable, but avoiding the subject allows resentment to build — and if you’re already under financial pressure, that silence will become deafening.

Someone in Beth’s situation could take her parents through the household budget, explain the increase in monthly costs since they moved in and the additional time their care requires from her throughout the week. She could also offer to help her parents review their own financial situation and set up a realistic household contribution plan — one that accounts for their CPP and OAS income and includes contributions toward housing, utilities and groceries.

Since Beth’s adult children are also living at home, she’d be wise to include them in the discussion as well. Adult children can contribute to a household significantly — by paying rent, help with caregiving or splitting grocery costs.

Don’t forget your retirement savings

Once household contributions are worked out, draw up a revised budget. Whatever your constraints, try to build savings into the plan — even in small amounts. Prioritize an emergency fund first, aiming for enough to cover three to six months of essential expenses.

After that, keep up on RRSP contributions. For 2026, Canadians can contribute up to 18% of their prior year’s income, to a maximum of $33,810 (5). Contributions are tax-deductible, meaning they reduce taxable income in the year they’re made and could result in a significant refund. If your employer offers an employer-matched group RRSP or Registered Pension Plan (RPP), contribute enough to get the full match at least. Not taking advantage of this perk means leaving money behind.

Leaving retirement savings as your last priority doesn’t only put your own future at risk — it can put your children in the same situation you’re in now.

A tax credit you may be missing

If you’re supporting an aging parent with a physical or mental disability who lives with you or is financially dependent on you, look into whether you’re eligible for the Canada Caregiver Credit (CCC) — a non-refundable federal tax credit administered by the Canada Revenue Agency (CRA).

For the 2025 tax year, eligible Canadians may be able to claim up to $8,601 for an infirm dependant aged 18 or older, such as a parent (6). Several provinces also offer their own caregiver tax credits, so it’s worth reviewing both federal and provincial options.

The credit won’t eliminate the financial pressure of caregiving, but it can help offset some of the cost at tax time.

Plan for your parents’ future — and yours

Think ahead about your parents’ longer-term care needs: What provincial health coverage will or will not pay for, if home care support is available in your area and whether your parents have considered long-term care insurance.