Do you find yourself financially supporting both your children and your aging parents? If so, you’re not alone — you’re part of what’s known as the sandwich generation.

In South Africa, this situation is all too common. Many individuals are caught between two financially dependent generations, often sacrificing their own retirement savings and long-term financial goals. But there is a way forward.

What Is the Sandwich Generation?

The sandwich generation refers to working-age adults — typically in their 30s to 50s — who are “sandwiched” between the demands of caring for elderly parents while still financially supporting their children.

In South Africa, the phenomenon is growing rapidly. According to the Old Mutual Savings & Investment Monitor (2023), 43% of South African households now support multiple generations, and 23% of the working population is financially responsible for both parents and children.

This burden has far-reaching effects on savings, career choices, emotional wellbeing, and long-term financial security.

Why Financial Dependence Is So Detrimental

Support across generations is a cultural value in many South African families — but without planning, it can come at a cost.

1. Reduced Retirement Savings

A significant portion of income is often diverted to school fees, groceries, or medical bills, leaving very little to invest in long-term retirement plans. This perpetuates a cycle of financial dependence, where today’s sandwich generation risks becoming tomorrow’s dependants.

2. Multi-Generational Living and Rising Costs

Around 32% of South African households are multi-generational (Stats SA), and this number is rising. High living costs and limited access to affordable housing mean more adult children return home — increasing financial strain.

3. Emotional and Mental Health Strain

Caring for two generations while trying to build a career or manage a household is emotionally exhausting. Mental health challenges like burnout and anxiety are common — and often go unspoken.

5 Practical Ways to Break the Cycle

With smart financial habits and planning, the sandwich generation can find relief — and begin to build security for themselves and the next generation. Here are five strategies to holistic planning:

1. Invest Early and More

Start contributing to retirement funds now — even if it’s a small amount.
Speak to your employer about increasing your contributions, or open a private retirement annuity. Contributions come with tax benefits, making them a smart choice long-term.

2. Invest for Longer

Consider extending your working years or establishing a passive income stream such as property rental, consulting, or side hustles. The longer you keep your money invested, the more interest it can earn — especially during peak earning years.

3. Withdraw Wisely

If you’re changing jobs, don’t cash out your pension or provident fund. Transfer it tax-free to a preservation fund or your new employer’s fund. Early withdrawals dramatically reduce retirement income in the long run.

4. Live Well and Budget Smartly

A detailed monthly budget can reveal unnecessary expenses. Switch to generic brands, cut back on luxury subscriptions, and focus on needs over wants. Even small savings free up money for emergency funds or investment.

5. Boost Your Income with a Side Hustle

Monetise your skills — whether it’s graphic design, plumbing, baking, or tutoring.
There’s high demand in South Africa for skilled artisans and small businesses. Side income can relieve immediate pressure and support your retirement goals.

The Pogir Difference: Planning That Understands People

At Pogir, we know that financial planning is personal. We help clients:

• Build custom roadmaps that reflect both current responsibilities and future dreams
• Access integrated benefit solutions that support the full family life cycle
• Make smart, informed decisions about saving, insuring, investing, and protecting

Whether you need retirement planning, life cover, short-term protection, or a benefits structure for your business — we’ve got your back.

Speak to a Pogir Financial Consultant Today