By the end of 2025, an estimated 3.1 million Britons will be caring for both children and ageing relatives at the same time — a 25% jump since 2020. That double responsibility doesn’t just eat your evenings and weekends. It erodes the single most important factor in a decent retirement: consistent, long-term saving. When you’re spending 22 hours a week on unpaid care, something has to give. For most people in this position, it’s their own pension.
Disclosure: Some links on this page are affiliate links. If you make a purchase through them, Britwealth may earn a commission at no extra cost to you. We only include products and services that are relevant to the topic.
This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
The peak age for being “sandwiched” is 45 to 54 — exactly the years when pension contributions should be at their highest. Instead of building a pot, you are often reducing hours, turning down promotions, or leaving work altogether. More than 600 people quit their jobs every day to care for older or disabled relatives. That daily exit rate is not just a career break. Each year of missed contributions compounds into a six-figure shortfall by the time you reach 67. The State Pension alone won’t cover it — not even close. Here’s what you actually need to know.
What the Sandwich Generation Actually Faces
It starts with a simple term. The Sandwich Generation describes adults who care for both their own children and their ageing parents at the same time. That sounds straightforward until you look at the hours. The average member dedicates 22 hours a week to unpaid duties — the equivalent of a part-time job that pays nothing and offers no pension.
Of the 3.1 million people in this position, 70% are between 40 and 59, and 85% are in some form of employment. That means the vast majority are juggling a job, childcare, and elder care simultaneously. Something slips. In most cases it is their own pension contributions, their health, or both. I’d be looking at which of those three is most reversible — and the answer is almost always the pension, but only if you catch the gaps early. The common retirement regrets around this are entirely avoidable, but only if you know what to watch for.
The Numbers That Drive the Retirement Gap
The research draws a clear line between care hours and retirement shortfall. A professional in their mid-40s who experiences a health crisis triggered by care stress faces a lifetime financial loss exceeding £5 million. That figure includes lost earnings, stalled career progression, care costs, and the depletion of retirement funds. For a couple, the combined lifetime hit is estimated at over £4 million.
Those numbers sound abstract until you break them down into what they mean for a single pension pot. A 45-year-old who reduces their pension contribution from 8% to 2% for ten years, while also missing five NI qualifying years, loses roughly £120,000 in today’s money by age 67 — assuming modest growth and no career recovery. That is not a worst-case scenario. That is the average trajectory for someone in this position.
The table below compares how the Sandwich Generation’s key metrics stack up against the general working population on factors that directly affect retirement income.
→ Scroll right to see all columns
| Factor | Sandwich Generation | General Working Population |
|---|---|---|
| Unpaid care per week | 22 hours | 0 hours (typical) |
| Persistent anxiety symptoms | 78% | 35% |
| Hypertension incidence | 40% higher than average | Baseline |
| Major cardiac event before 60 | 2x the risk | Baseline |
| Likely to reduce working hours | High (600+ quit work daily) | Low |
Each of those rows translates directly into retirement outcomes. Higher stress means more sick days, earlier workforce exit, and fewer years of pension growth. The 22 hours of unpaid care is the biggest single drag — that is time you cannot spend earning, training, or even just recovering from a work day. The health numbers compound the problem. If you are twice as likely to have a heart attack before 60, your retirement planning horizon is not the same as someone who expects to work until 67. That changes everything about how you save and when you can access your pension.
Where the Planning Usually Breaks Down
Most retirement guidance assumes a steady career, consistent saving, and reliable health. That assumption falls apart the moment care duties begin. Here are the three places where the system most often fails the Sandwich Generation.
Not tracking NI gaps while caring
A qualifying year for State Pension requires 52 weeks of NI contributions or credits. If you step away from work or drop below the earnings threshold, that year becomes a gap. The shortfall is about £300 per year of missing NI record, every year of retirement. Over a 20-year retirement, one missed year costs roughly £6,000 in total State Pension income. You can claim Carer’s Credit or Specified Adult Childcare Credit to fill those gaps, but only if you apply. The Government Portal allows you to check your NI record online at any time. If you find gaps within the last six tax years, you can make voluntary Class 3 contributions at about £17 per week to fill them. Waiting beyond six years and the window closes for most gaps.
Opting out of the workplace pension to cover care costs
When cash is tight, the pension seems like the obvious place to cut. Auto-enrolment requires a minimum 8% contribution (5% from you, 3% from your employer). Opting out saves you that 5% now but costs you the employer match and the tax relief. On a £30,000 salary, opting out for one year loses roughly £2,400 in combined contributions and growth (assuming 4% real return over 20 years). Do that for seven years, and the loss is over £20,000. The employer match is free money — turning it down while care costs rise is the fastest way to shrink your retirement options.
Ignoring your own health until it becomes a crisis
Chronic stress from dual caring shrinks the prefrontal cortex, raises blood pressure, and suppresses immune function. The Lancet research shows dual-carers have a 40% higher incidence of hypertension and are twice as likely to have a heart attack or stroke before 60. A single major health event can trigger early retirement, loss of income, and depletion of savings — often permanently. The NHS offers free health checks for people aged 40 to 74. Booking one annually is the single cheapest intervention you can make. If you miss it, the financial impact of a cardiac event at 55 will dwarf any pension contribution you might have saved.
Making It Work When You Are Pulled in Three Directions
The goal is not to save aggressively while caring — that is unrealistic for most people. The goal is to avoid permanent damage to your retirement prospects during the care years. That means protecting the State Pension, keeping the employer match, and maintaining your own health so you can return to full earning when care demands ease.
Protecting your State Pension with credits
If you care for someone for at least 20 hours a week and they receive a qualifying benefit (Attendance Allowance, Disability Living Allowance, PIP), you can claim Carer’s Credit. This fills your NI record without requiring you to pay anything. You apply online via the Government’s Carer’s Credit page. The process takes about 15 minutes and requires the cared-for person’s details and benefit award letter. If you are also working and earning above the NI threshold, the credit is not needed. But the moment you drop below that threshold due to reduced hours, the credit becomes essential. One application every few years can save tens of thousands in lost State Pension over your retirement.
Keeping the employer match alive
If you can afford the minimum 5% personal contribution, the 3% employer match and the tax relief mean your pot grows by effectively 8% on your base salary. That is a guaranteed return no investment can beat. If you genuinely cannot afford the 5% because care costs have pushed your budget to the limit, check whether your employer offers a lower contribution option or salary sacrifice arrangements that might reduce your NI bill as well. Some employers will allow a temporary reduction to 3% personal contribution while keeping the full match. Ask your HR team. The answer might surprise you.
Building a phased exit plan
Care demands typically peak between ages 50 and 60, then ease as children leave home and care needs for parents may shift into formal care. If you can keep your pension contributions alive at a low level during the peak care years, you can make catch-up contributions once the care burden lifts. The rules allow you to carry forward unused annual allowances from the previous three tax years. That means a 55-year-old who only contributed 2% for a decade can potentially contribute significantly more in their late 50s and early 60s — but only if the pension scheme permits it and your income allows it. Planning for that catch-up window while you are still in the thick of care duties is what separates a manageable retirement from a crisis.
For specific questions about how care responsibilities affect your pension options or NI record, you may find it useful to speak with a financial specialist who can review your situation without a long-term commitment.
What the four-generation shift means
Longer lifespans mean the “four generation club sandwich” is becoming common. People in their 40s to 60s may support children, parents, and grandparents simultaneously. The 2025 National Carers’ Survey found 2.8 million people now identify as sandwich carers, up from 1.9 million a decade ago. That trend is not slowing. If you are in your 30s now and expect to care for both children and parents, your retirement planning needs to account for a care window that could last 20 years, not 10. The earlier you build that assumption into your contribution rate, the less it hurts later.
Can I claim Carer’s Credit if I still work part-time? ▾
Does the State Pension go up if I defer it while caring? ▾
What happens to my workplace pension if I quit work to care full-time? ▾
Can I still contribute to a SIPP while on Carer’s Allowance? ▾
Does unpaid care affect how much I can withdraw from my pension later? ▾
What if my parent’s care costs exceed their income — can I use my pension to cover it? ▾
The Cost of Waiting Is Steeper Than the Cost of Acting
The research is clear: the Sandwich Generation is not a temporary squeeze for most people. It is a structural shift in how careers, care, and retirement interact. The people who fare best are the ones who protect their State Pension record, keep their employer match alive, and invest in their own health during the care years — not the ones who try to save aggressively through the squeeze. If you are in your 40s now and caring for both children and parents, the single most important decision you can make this year is to check your NI record and claim Carer’s Credit. That ten-minute task protects a stream of income that will pay out for 20 years or more. Retirement dreams versus reality comes down to the gap between what you plan and what actually happens. This is where the gap starts.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Future-Proofing Your Finances: Inflation-Busting Retirement Strategies UK Focused.
Sources and Further Reading
Is Your State Pension Enough? UK Retirement Realities Revealed — A closer look at what the State Pension actually pays and how far it stretches in today’s cost of living.
Retirement Regrets: The UK Mistakes You Absolutely Must Avoid — The most common and costly errors UK workers make in the decade before retirement.
Centre for Intergenerational Studies (2025). The Sandwich Generation: Health, Wealth and the Squeeze. 🔗
Carers UK / ONS (2025). UK National Carers’ Survey. 🔗
The Lancet (2024). Cardiovascular risk among dual-caregivers: a cohort analysis. 🔗
Office for National Statistics (2023). Sandwich caring in the UK: characteristics and health outcomes. 🔗
