Jakarta, ThedailyID — Indonesia’s growing sandwich generation faces increasing financial pressure. Many working adults now support not only their children but also aging parents and other family members. Rising education, healthcare, and living costs have made long-term financial planning more important than ever.
The trend has become more significant as Indonesia enters an ageing population phase. According to Statistics Indonesia (BPS), 82.96% of older people households still rely on income from working family members. The figure highlights the growing responsibility of productive-age workers. Many of them support multigenerational households.
Household expenses continue to rise. BPS data from its 2024 Education Supporting Statistics publication shows that annual higher education costs average Rp19.01 million per academic year.
Healthcare spending has also increased. BPS reported that healthcare accounted for 2.54% of total household expenditure in 2025. The agency also warned that unexpected medical expenses can place significant financial strain on families.
For many members of the sandwich generation, one income supports several generations. As a result, families face greater financial risks and more complex responsibilities.
IFG Life Corporate Secretary Gatot Haryadi said the biggest challenge is the heavy responsibility carried by the family’s primary breadwinner.
“When the breadwinner experiences health problems, loses the ability to work, or passes away, the impact extends beyond that individual,” Gatot said in a statement released on July 20.
“It can affect children’s education. It can also reduce parents’ welfare and threaten the financial stability of the entire family.”
He said people should build a strong financial foundation during their productive years. Early preparation helps families withstand unexpected financial shocks.
According to IFG Life, families should first build an emergency fund. They should also secure adequate life and health insurance. In addition, they should invest for the long term and prepare for retirement.
Gatot added that better financial planning allows families to support each generation. It also helps families avoid passing excessive financial burdens to future generations.
As part of its financial literacy program, IFG Life, a member of the Indonesian Financial Group (IFG), will continue providing insurance and protection solutions. The company designs its products to meet the changing needs of Indonesian families at every stage of life.
