What is multigenerational retirement?

Multigenerational retirement happens when one retiree's savings have to support more than just their own retirement, often stretching to cover aging parents or even grandparents who outlived their own savings. It's different from the sandwich generation, where working adults balance a paycheck with caregiving. Here, the retiree isn't earning anymore, so every extra year of support comes straight out of a fixed portfolio.

How common is multigenerational retirement support?

It's more common than most people realize. AARP research from 2026 found nearly 1 in 3 caregivers of adults, about 17 million Americans, are raising a child while also caring for an adult with a disability or complex medical condition. Separately, Pew Research found 54% of adults in their 40s have a living parent 65 or older while also raising or supporting a child.

Why is multigenerational retirement happening now?

Two trends are colliding. Life expectancy keeps climbing, and a 65-year-old couple today has roughly a 50% chance one spouse lives past 92. At the same time, savings haven't kept pace. Only 12% of retirement savers have enough set aside to last more than 10 years, according to a 2026 PensionBee survey. Portfolios built for one retiree now often need to stretch across two or three.

How should advisors prepare portfolios for multigenerational retirement?

Advisors need to model household risk across generations instead of just one retiree's timeline. That means stress-testing for 30-plus year horizons, prioritizing growth over pure income strategies, and asking clients directly whether they already support, or might need to support, aging parents. Americans now say they need $1.46 million to retire comfortably in 2026, and that figure only accounts for one generation's needs.

Multigenerational Retirement Planning: A New Reality

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Multigenerational Retirement Planning: A New Reality | Dunham