In 2025, elder care exceeds spending on children: the rise of the “sandwich generation” and the growing role of corporate welfare will reshape Italian family budgets
We are living longer and this is also revolutionizing the way family budgets are managed. In 2025, for the first time, spending on care for parents and grandparents exceeded that for children. According to an analysis by the Coverflex Study Center, 54% of the resources allocated to family care are now allocated to elder care, compared to 44.6% reserved for dependent children. The lengthening of the average lifespan and the aging of the population are redefining the economic priorities of families, while the so-called longevity economy, which in Italy is already worth around a third of the GDP, promises to grow further in the coming years.
Sandwich generation: workers who financially support parents and children
The so-called “sandwich generation” is increasingly widespread: workers who find themselves supporting children and elderly parents at the same time. A condition that was once an exception and is now becoming normality. This dual responsibility profoundly changes income management. It is no longer just a question of investing in the future of children, but of meeting immediate and often burdensome needs linked to care for the elderly. The result is growing pressure on family budgets and time organization. And the burden of care remains predominantly on the shoulders of women, who live longer but often in worse health conditions, also due to family responsibilities managed throughout their lives.
Public welfare and real needs: over 4 thousand euros a year for elderly parents
What also emerges forcefully is the misalignment between the concrete needs of families and the formal criteria of public welfare. Only one worker in five, among those who use resources to assist their parents, is able to declare the family member as a “dependent” according to the current tax parameters. This means that a large part of caregivers effectively remains invisible to the system. Yet it incurs real, often high, costs. Corporate welfare fits into this void, becoming a crucial tool for bridging the gap between legislation and reality. And this is why more and more employees today use their welfare plans to cover care-related expenses, even in the absence of formal recognition. And so corporate welfare is no longer perceived as a set of additional benefits, but as a structural component of income, necessary for the “sandwich generation”. The data shows that those who care for elderly parents allocate on average around 4,350 euros per year from their welfare plan to this item. If for children spending remains concentrated on education (+14% on an annual basis), for care for the elderly the sectors are more diversified and above all on urgent matters (care, assistance…).
The challenge today is to adapt welfare (private and public) to a society that lives longer. Because longevity is an achievement, but its cost is already a reality on the shoulders of families. And its redistribution will be one of the key themes of the Italian economy in the coming years.
