Feeling the 'sandwich generation' squeeze? Here's help.

Heads up, Gen X, Y and Z: Someday, you'll likely be part of another generational cohort, the sandwich generation, if you're not already feeling the squeeze. Nearly a quarter of U.S. adults — and 54% of those in their 40s — have found themselves caring for aging parents while raising or supporting their own children, according to Pew Research Center.Footnote ¹ And with longevity increasing on averageFootnote ² and people delaying having children,Footnote ³ it's very likely those numbers will grow.

People in this situation can feel incredible financial stress, says Cynthia Hutchins, director of Financial Gerontology for Bank of America. "You've built a nest egg, but then Mom or Dad becomes ill, and you also have a son or daughter trying to get on their feet." While the desire to help comes from the best of places, it's easy to underestimate the potential cost to your own future.

To manage the competing demands, Hutchins suggests, try separating everyone's needs into three buckets — yours, your parents' and your kids'. That way you can better understand what you can (and can't) do based on the resources you have. Then, consider talking with an advisor about ways you can structure your help.

"You're not doing family members any favors if you ignore your own financial well-being in order to help them," says Hutchins. Even if you have to scale back, try to contribute at least enough to your 401(k) plan to earn any matching contributions from your employer and increase your contributions as soon as you're able. That includes taking advantage of the catch-up provisions for people 50 or older. If you're between the ages of 60 and 63, you can make even larger catch-up contributions to your 401(k) or other workplace retirement plan accounts (plan rules permitting).

Though your parents' health may dominate your thoughts, don't neglect your own health. Contributing to a health savings account now could help you weather your own healthcare expenses later on. And consider long-term care insurance, Hutchins advises. "People greatly underestimate their chances of needing such care at some point in their lives." Planning ahead can help you manage the costs later.

Become familiar with your aging parents' financial situation and discuss ways they might bolster their savings and investments before the need becomes critical, suggests Hutchins. It's wise to be proactive, especially if you are concerned about them running out of money. If you work with one, a financial advisor can provide guidance on adjusting their portfolio to potentially maximize income for the remainder of their lives.

Once you've opened the lines of communication about their finances, make sure your parents have put their wishes in writing with an estate plan. Having legal documents such as a will, financial power of attorney and healthcare proxy in place not only ensures everyone is on the same page, but it provides you with a road map to handling your parents' health and financial affairs if they need help in the future.

Explore local resources to help ease the strain of running errands, suggests Hutchins. Helping parents use a ride-sharing app or public transportation could save you time and allow them to maintain their independence. Grocery and meal delivery apps and medication management services are also useful time-savers for caregivers. Check your local agency on aging for more tips and useful resources.

Also, "get siblings involved in sharing the costs and responsibilities of caring for your parents," says Hutchins. To help fill any gaps, the family could bring in a geriatric care manager — a professional who can help with in-home needs, coordinate medical services and even recommend assisted living or continuing care communities if that becomes necessary.