17 Oct 2019
The sandwich generation refers to middle-aged individuals who are pressured to support both aging parents and growing children. – Investopedia
Being part of the so called ‘Sandwich Generation’ has many challenges in this modern age. The biggest of which is the financial strain this generation has to endure. Supporting children long into their adult years and caring for parents, leaves very little disposable income for things such as retirement savings and investments.
What caused the Sandwich Generation?
• Rising cost of living and inflation
• Aging parents who are in need of care or assisted living
• Retired parents who are financially not able to support themselves
• Becoming a parent later in life
• Adult children who still rely on you financially – it takes young adults longer to get on their feet financially because of the high cost of living eg. deposits for first homes
With this huge financial burden, how can you ever save enough to look after yourselves at retirement? If you are at the younger end of the sandwich generation (closer to 40 than 60), then there is still time to salvage the situation.
Speak to your adviser about helping you analyse your budget and also suggest the best savings options for you according to your financial circumstances. You don’t want to end up financially dependent on your children when you retire and put them in the sandwich generation situation as well.
Possible tips and solutions
• Start saving now, even a small amount saved is better than no savings at all
• Commit to a regular monthly savings plan that is automatically deducted from your bank account
• Look over your budget and try to cut on unnecessary spending. The money saved could supplement your pension contributions
• Start a private pension plan asap – monthly premiums are low and it will supplement your company or government pension at retirement
• Help your adult children with their budgets to curb luxury spending and be more financially independant
Speak to your deVere adviser about possible solutions to boost your retirement nest egg. [email protected]
Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.