Salvatore M. Capizzi, CEPA, CBDA, is Dunham's Chief of Sales & Marketing and a 2026 Wealthies CMO of the Year Finalist. His work focuses on retirement planning, emerging trends for financial advisors, and advanced tax, trust, and estate strategies.
Multigenerational retirement is when one retirement portfolio has to support more than one generation at the same time, not just the retiree who saved it. It's driven by two forces colliding: people are living much longer, and more retirees are financially supporting aging parents or even grandparents. A married couple retiring at 65 today has a 50% chance one spouse lives past 92, and a 25% chance one lives past 97. Meanwhile, an estimated 17 million Americans, 29% of all caregivers of adults, are now sandwiched between raising a child and caring for an adult with a disability or complex medical condition . Dunham calls this compounding pressure Multi-Generation Retirement - a single nest egg stretched across three lifetimes instead of one.
Key Takeaways
Multigenerational retirement means one retiree's savings must stretch to support their own retirement plus aging parents, and sometimes grandparents, at the same time.
A 65-year-old married couple has a 50% chance one spouse lives past 92 and a 25% chance one lives past 97.
Roughly 17 million Americans, 29% of all caregivers of adults, are sandwich generation caregivers, averaging age 42 .
Only 12% of U.S. retirement savers currently have enough set aside to last more than 10 years .
This differs from the traditional sandwich generation because the retiree is no longer earning, so every added year of support draws down a fixed portfolio instead of income.
This new reality examines the mounting pressure on retirement portfolios as multiple generations begin drawing from the same financial pool.
And to keep up, advisors must rethink traditional strategies and prepare for a future where retirement planning spans not just decades - but generations.
What is Multi-Generation Retirement?
In our discussion of the Retirement Investment Paradox™, we used the analogy of a boat sailing from San Diego to Hawaii. What if, as you were sailing, you discovered your parents' ship, which had embarked on Hawaii before you, and they had exhausted their supplies? They planned for a shorter voyage, never expecting to sail this far. Now, you must share your supplies between the two ships. Your carefully planned resources must stretch to sustain both boats.
Then, as you navigate this new challenge, you spot your grandparents' boat, also depleted of provisions. They, too, had planned for a shorter journey, but favorable winds kept them sailing far longer than anyone expected. Now, your original supplies must support three ships through their extended voyages.
This is the essence of Multi-Generation Retirement™. One generation's retirement resource potentially supports multiple generations simultaneously. Just as our sailor never planned to provision multiple ships, today's retirees may find themselves supporting their own retirement, their longer-living parents, and perhaps even grandparents. This isn't a fringe scenario. Nearly 17 million Americans, 29% of all caregivers, already balance raising a child with caring for an aging adult with a disability or complex medical condition.
I want to illustrate this emerging challenge with a personal example.
I have a friend who is 67 years old and seriously considering retirement. He is caring for his 102-year-old mother. His situation points to a change in retirement planning. As he plans his and his wife's retirement, he must also prepare for his mother's ongoing care and support.
His mother's age isn't an outlier trend either - nursing home resident counts could climb as much as 75% over the next decade as more people live into their late 80s and 90s.
How Common Is Multigenerational Retirement?
This scenario differs from the traditional "sandwich generation" concept, where working adults simultaneously support aging parents and growing children. In the sandwich generation, individuals maintain active employment, allowing them to adapt their income to meet multi-generational responsibilities.
This reality changes our understanding of retirement planning. The need for substantial portfolio growth becomes more important than ever as retirees must address persistent inflation and increased longevity across multiple generations.
The combination of extended longevity, inflation, and multi-generational support obligations creates unprecedented planning challenges.
Why Is This Happening Now?
Consider this: a couple has a child at age 30. When that child turns 70, he wants to retire, but because his parents did not plan to live as long as they did, they're now 100 and broke. He now has two generations to support in retirement.
That child, when he was 30, had a child of his own, a daughter. When she turns 70, she decides to retire. With poor planning, her parents are 100 and broke, and her grandparents are 130 and broke. She now must support three generations of retirees. And none of these children have what previous generations had - an inheritance.
Two real trends are driving this.
Life expectancy keeps climbing - a 65-year-old couple today has a 50% chance one spouse lives past 92, and a 25% chance one lives past 97. Meanwhile, savings have not kept pace. Only 12% of U.S. retirement savers have enough set aside to last more than 10 years, and 13% couldn't survive one month on their current funds, according to a 2026 PensionBee survey.
Portfolios built for one retiree now often need to stretch across two or three. This is not science fiction. It is why we must change our thinking about retirement, account for much longer lifespans, and position portfolios to provide opportunities for growth in calculated ways.
How Should Advisors Prepare Portfolios for It?
The era of one-generation retirement planning is fading faster than many may realize.
As lifespans extend and families deal with overlapping retirements, the need for Multi-Generation Retirement strategies has never been more pressing.
Financial advisors must start building portfolios that prioritize long-term growth, account for sustained inflation, and manage risk across three lifetimes.
And there isn't much wiggle room left, even for single retirements.
Americans now believe they need $1.46 million to retire comfortably in 2026, up more than 15% from the year before, according to Northwestern Mutual's 2026 Planning Progress Study, and that figure assumes only one generation's needs. Advisors now need to model household risk across mutliple generations - stress-test for 30-plus year horizons, prioritize growth over pure income strategies, and ask directly whether clients are already supporting, or may need to support, aging parents.
Because soon, the greatest threat may no longer be outliving your money, but outliving your money while supporting others who've outlived theirs.
Frequently Asked Questions About Multigenerational Retirement
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.
Sources
AARP —Nearly 1 in 3 Caregivers of Adults Are in the Sandwich Generation [aarp.org]
Investment News — Most Americans Are at Risk of Outliving Their Retirement Savings [investmentnews.com]
Investopedia — How Longer Life Expectancy Is Shaping Modern Retirement Planning [investopedia.com]
Northwestern Mutual — Americans Believe They Will Need $1.46 Million to Retire Comfortably, Up More Than 15% Since Last Year [news.northwesternmutual.com]
Dunham — The Retirement Investment Paradox [dunham.com]
CompoundFig - Longevity Risk Retirement Planning: Living to 95+ and the Centenarian's Financial Blueprint [compoundfig.com]
Disclosures
This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax or investment advice or an investment recommendation. Any investment products or services named herein are for illustrative purposes only, and should not be considered an offer to buy or sell, or an investment recommendation for, any specific security, strategy or investment product or service. Always consult a qualified professional or your own independent financial professional for personalized advice or investment recommendations tailored to your specific goals, individual situation, and risk tolerance.
Information contained in the materials included is believed to be from reliable sources, but no representations or guarantees are made as to the accuracy or completeness of information. This document is provided for information purposes only and should not be considered as investment advice.
Dunham & Associates Investment Counsel, Inc. is a Registered Investment Adviser and Broker/Dealer. Member FINRA/SIPC. Advisory services and securities offered through Dunham & Associates Investment Counsel, Inc.
