Gen Z faces mounting financial strain as many tap retirement savings for family care
A 2026 study finds that nearly half of twenty-somethings are supporting both children and parents, prompting many to withdraw from retirement accounts.
New data released in 2026 shows that the so-called sandwich generation now includes a sizable share of Gen Z, with 39% juggling support for both a child and an aging parent. The financial burden—covering housing, food, health care and in-home care—has led about 30% of these young adults to dip into retirement accounts, outpacing millennials, Gen X and baby boomers. Survey respondents reported the highest levels of emotional responsibility and financial anxiety among all age groups.
Experts caution that early withdrawals erode decades of compound growth, potentially delaying retirement and other milestones like home ownership. They suggest families discuss expectations, set boundaries and incorporate caregiving costs into long-term financial plans to avoid jeopardizing future security.
Why it matters
Gen Z's early retirement withdrawals could weaken future savings and strain the broader economy.
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