TONY SINGLETON | The ‘sandwich’ generation redefining financial stability in SA

For many South Africans in their late 30s to 60s, life increasingly involves looking both forward and backwards at the same time.

While younger generations are building careers, raising children or still finding their financial footing, many are also stepping into the role of caregiver for ageing parents. Longer life expectancy, rising living costs and delayed financial independence among young adults have created a new dynamic where two generations rely on the same person for support.

This emerging “sandwich” generation is growing rapidly in South Africa, reshaping family responsibilities and financial priorities in ways few expected a decade ago.

Adults between the ages of 30 and 60 — the demographic most affected by these shifting pressures — experience significantly lower levels of financial confidence than both younger and older groups. This trend reflects the reality that many are simultaneously responsible for school fees, groceries, transport and household expenses, while also helping parents cover health care, medication and daily needs.

With approximately 5.6-million South Africans now over the age of 60, the demand for family-based elder care continues to rise. For younger adults trying to build their own financial future, this dual responsibility places an enormous strain on emotional and economic wellbeing.

Health care costs have become one of the most intense sources of strain. Medical inflation continues to run far ahead of the consumer price index (CPI), and specialist fees often exceed medical aid rates by several hundred percent.

Without adequate financial and social support, the burden can lead to chronic stress, reduced productivity and strained family relationships.

Despite this, only a small portion of medically insured South Africans have gap cover, leaving many families exposed to sudden medical bills when parents need hospitalisation, specialist treatment, advanced scans or chronic care. Gap cover providers report steadily rising claims, including high-cost procedures that can run into tens or even hundreds of thousands of rands.

For younger adults already juggling multiple expenses, these unexpected medical shortfalls can quickly erode savings, push households into debt, or derail long-term goals such as buying property or saving for retirement.

The emotional demands placed on the sandwich generation are as significant as the financial ones. Caregivers often describe feeling stretched thin, burnt out and struggling to maintain a sense of balance between work, parenting responsibilities and caring for ageing parents.

The constant pressure to be present for everyone — children needing attention, parents requiring appointments and support, employers expecting performance — can be overwhelming. Without adequate financial and social support, the burden can lead to chronic stress, reduced productivity and strained family relationships. This is particularly true in households where resources are already limited or where siblings are unable to share the load.

Given these overlapping pressures, many younger adults are rethinking how they plan for health care and financial stability. Gap cover, for example, is becoming an increasingly important tool for bridging the widening financial gap between what medical schemes cover and the actual cost of specialist care. It offers practical relief by absorbing the shortfalls that would otherwise fall on families, allowing caregivers to manage parental health care without sacrificing their own savings or long-term goals.

In a climate where unexpected medical expenses can have lasting consequences, this buffer becomes a form of protection not only for a parent’s health but also for the entire family’s financial security.

While the responsibility can be heavy, it underscores the deep family bonds and interdependence that characterise South African households

Preparing for this reality requires honest conversations and proactive planning. Many young South Africans are beginning to reassess their budgets, discuss shared caregiving responsibilities with siblings, and look for ways to strengthen their financial resilience. For some, that means prioritising emergency funds; for others, it means reviewing medical aid options or seeking professional financial advice.

Alongside the financial considerations, there is a growing recognition that emotional wellbeing is central to coping with the intensity of dual caregiving. Caregivers need time to recharge and protect their own mental health to sustainably support both parents and children.

Ultimately the rise of South Africa’s sandwich generation reflects a profound shift in family structures. With parents living longer and children taking longer to achieve financial independence, younger adults are increasingly becoming the link between multiple generations.

While the responsibility can be heavy, it underscores the deep family bonds and interdependence that characterise South African households. With the right support systems, planning and financial tools — including gap cover — young caregivers can manage these demands without sacrificing their own stability.

As health-care costs continue to rise and family dynamics evolve, preparing now is one of the most powerful ways younger South Africans can protect not only their parents but also themselves and the next generation to come.

• Singleton is CEO at Turnberry Management Risk Solutions, an authorised FSP