Carers from the "Sandwich generation" lose £6,000 annually trying to support elderly family members

Middle-aged adults frequently have to choose between taking care of their elderly parents and children or grandchildren, which forces them to take time off from work and suffer significant wage losses while still trying to save for retirement

The real cost of caring is examined.

According to new research, caring for an elderly relative can result in a large financial loss of income, and the decline in earnings can occur during the years when pension savings are at their highest.

The average monthly income loss is 522, or 6,268 annually.

The "sandwich generation"middle-aged adults, typically in their 40s to 60sare most impacted because they must balance taking care of their aging parents and their own dependent children or young adults who may be living at home.

In an increasingly common scenario brought on by longer life expectancies and later childbearing, caring responsibilities can include offering financial, emotional, or physical support.

This strained group frequently works full-time while juggling obligations like managing their children's education and their parents' complicated medical needs, which causes a great deal of time and financial strain.

Frequently, working full-time becomes unfeasible. According to a survey conducted by retirement firm Just Group among carers between the ages of 45 and 75, nearly four out of ten unpaid carers of elderly relatives have either completely stopped working (9 percent) or cut back on their working hours (28 percent) in order to provide support.

The numbers are even higher among those who are the only caregivers for an elderly dependent, with 14% quitting their jobs and 33% reducing their hours.

"We understand the physical and mental toll the sandwich generation faces as they are squeezed between work, supporting children, and caring for ageing parents," stated Emma Walker, director of the retirement firm Just Group. The financial and professional cost this generation bears for providing care is something that is rarely considered. The "

What are the unstated expenses associated with taking care of others?

According to Justs' research, many unpaid carers are experiencing severe reductions in their regular monthly income as a result of cutting back on their working hours. Unpaid caregivers typically lose £522 per month, or £6,268 annually.

Of those surveyed, about one in seven (14%) claimed that giving care had reduced their monthly income by more than £1,000.

Another strain on caregivers' finances is the out-of-pocket costs associated with their caregiving duties, which can range from travel expenses to paying for regular shopping. These hidden costs can add up to an average of 100 per month, with more than one in 10 (11 percent) spending more than 200 every month.

Tens of thousands of pounds are being saved for the taxpayer by this unofficial at-home care. A year's worth of residential care costs 66,456, according to industry estimates for self-funders.

Walker continued: "In order to fulfill their caregiving responsibilities, many people reduce their working hours or quit altogether, which has the unintended consequence of lowering their income by hundreds of pounds each month on average.

"This often coincides with the period in their careers when people reach their peak-earning potential, a point at which many may have planned to use spare income to build up pension pots and pay off the mortgage.

Naturally, many caregivers are happy to be able to provide for their family and don't consider the expense. However, it's crucial that people consider how quitting work may affect their financial future. The "

Caring and the gender pension gap.

According to a Department for Work and Pensions (DWP) analysis, nearly 15 million people in the UK are not saving enough for retirement, indicating a systemic engagement crisis.

The gender pension gap, which disproportionately affects women, is frequently caused by caring responsibilities.

According to the 2021 Census, the latest data available, of the five million people providing unpaid care in England and Wales, three million (59 percent) are women.

According to a recent study, gender stereotypes, mental strain, and women's typical lower earnings (the gender pay gap), employment gaps and part-time work due to childrearing, and their disproportionate burden of unpaid care for family members all contribute to women's generally much smaller pensions.

The University of Edinburgh study warns women are retiring with far smaller pension pots due to these structural inequalities. According to data from the Department for Work and Pensions (DWP), by the age of 59, men have a median defined contribution (DC) pension wealth of 75,000, which is the most common form of private workplace pension, while women have 19,000.

The report in conjunction with wealth manager Evelyn Partners, which seeks action to tackle the retirement gulf calls on the financial services sector to recognise the hidden systemic, social and situational factors preventing women from saving and planning for later life, rather than focusing on their perceived lack of confidence in financial planning.

Tobi Schneider, fintech sector lead at Edinburgh Innovations and Compassion in Financial Services Hub, co-director, said: "With an ageing population, without action, we are sleepwalking into financial disaster for a large proportion of people. "

Women are 12 times more likely than men to take a career break to raise children, according to Scottish Widows annual Women and Retirement Report 2025 leading to a potential pension gap of 113,000 (32 percent) an increase since the previous report when it was 100,000 (30 percent).