Federal Employees in the Sandwich Generation – What You Can Do Now

For federal employees balancing the responsibilities of both aging parents and children, financial uncertainty can make an already difficult situation even more challenging. With recent workforce reductions and shifting benefits, many are reevaluating their financial plans while juggling caregiving duties.

This is a massive adjustment because caring for a parent in and of itself presents an entire new world of uncertainty, navigating and learning about new resources – and now coupled with that you may be dealing with that in your career as well. This can leave you with a feeling of not even knowing where to start. So just for today, let’s take baby steps – instead of dwelling on what’s changing, focus on what you can control right now to protect your financial future and support your loved ones.

Review Your Benefits and Other Resources

Navigating benefits while caring for both children and aging parents can be overwhelming. Many federal employees are unaware of how certain benefits can help ease the burden – the key is to understand them before a crisis happens.

Sick Leave for Family Care – Federal employees can use their own accumulated sick leave to care for an ill parent, child, or spouse. Some agencies allow for advanced sick leave in urgent situations – check your agency’s policy. If caregiving extends long-term, FMLA (Family and Medical Leave Act) provides up to 12 weeks of unpaid leave to care for a parent with a serious health condition.

Employee Assistance Programs (EAP) – Many federal agencies provide EAPs that offer counseling and referral services. These programs can assist in finding elder care resources, support groups, and other services to help manage caregiving responsibilities.

Speak with HR about temporary accommodation – While flexibility is being reduced across agencies, some supervisors may still approve adjustments on a case-by-case basis, especially for short-term caregiving emergencies.

Local aging agencies can provide direct resources -Every state has Area Agencies on Aging that offer services like meal assistance, transportation, and caregiver support.

Protecting Your Own Financial Stability While Caregiving

Caring for an aging parent often comes with unexpected costs- medical bills, home modifications, travel for doctor’s appointments, or even cutting back on work hours to help. If you’re in this position, here’s how to protect your own financial stability while covering caregiving expenses.

Prioritize Cash Flow Over Perfection

• Emergency savings matter, but build it realistically. If caregiving is draining your finances, a full six-month emergency fund might feel impossible. Instead, focus on keeping at least one month’s worth of expenses liquid.
• Pause aggressive debt payoff if necessary. If you’re making extra payments on low-interest loans, consider redirecting that cash to savings for now. This isn’t forever—but having available funds for emergencies is more important than speeding up debt repayment.
• Look for temporary expense cuts. If your budget is stretched, small adjustments add up. Review subscriptions, dining out, or discretionary spending to free up cash for unexpected caregiving costs.

Keep Retirement Contributions Going (At Least the Match)

• Don’t let caregiving derail your long-term security. It’s tempting to pause TSP contributions when money is tight, but try to contribute at least enough to get the full agency match – that’s free money you don’t want to leave behind.
• Consider shifting contributions if needed. If you’re feeling financial strain, you might temporarily reduce contributions to the minimum match level, but avoid stopping them altogether.

Avoid Taking on New Debt for Caregiving

• Set financial boundaries early. If your parent needs financial help, don’t automatically assume you have to cover everything. Explore Medicaid, veteran benefits, or local assistance programs before tapping into personal savings.
• Be cautious about credit cards and loans. If caregiving expenses are creeping up, explore interest-free hardship payment plans with medical providers before resorting to credit cards.
• If you’re supporting a parent financially, track every dollar. Caregiving expenses add up quickly. Keep a detailed list of what you’re covering so you can adjust your budget and explore tax deductions where applicable.

What to Do If You Were Just RIF’d or Took a VERA Earlier Than Planned

Losing a job unexpectedly or retiring before you were financially or mentally ready can feel like the ground just disappeared under you. Whether you were part of a Reduction in Force (RIF) or opted for a Voluntary Early Retirement Authority (VERA) under pressure, you’re now facing one critical question: What’s next?

Here’s how to regain control and make the most of your options right now:

Take a Financial Inventory Right Away – Know exactly what you have to work with. List out your cash savings, TSP balance, pension estimates, and any expected severance or unemployment benefits.

Reassess your immediate budget – Cut anything unnecessary to stretch your savings while you figure out your next steps. If you have severance or TSP funds available, be strategic about withdrawals to avoid unnecessary taxes or penalties.

Look into temporary income option –  Even if you weren’t planning to work again, a part-time job or contract work can bridge the gap while you adjust. We know this is overstated – most people aren’t looking for a “side gig,” they’re looking for a true career move. No one ever wants to feel like they’ve taken such a step back that they’re left wondering what their life’s work has amounted to. However, during times of financial strain, having even a small stream of income can help with immediate expenses and, more importantly, keep you engaged in the workforce, which could lead to new opportunities down the road. Whether it’s consulting in your area of expertise, taking on a short-term contract, or exploring a bridge job while weighing your next move, staying in motion can be beneficial both financially and professionally.

Final Thoughts: Moving Forward One Step at a Time

Balancing caregiving, financial uncertainty, and career disruptions is no small feat, especially when everything feels like it’s changing at once. But no matter what situation you’re facing, the key is to focus on what you can control right now.

• If you’re actively caring for a parent, lean on available federal resources – from sick leave policies to Employee Assistance Programs and local aging services.
• If your finances are feeling stretched, prioritize cash flow and protect your long-term stability – even small adjustments can make a difference.
• If your career has been unexpectedly disrupted, take stock of your options and stay engaged – the next opportunity may come from an unexpected place.

The challenges of the Sandwich Generation aren’t easy, but you don’t have to figure it all out at once. Taking small, intentional steps today can help you regain stability and move forward with confidence.