Why the “Sandwich Generation” needs a retirement plan
People in their 50s and 60s are being put under pressure like no other pre-retirement generation. Sometimes referred to as the “Sandwich Generation” they are being squeezed between the needs of older parents and their responsibilities to their children.
Why is this a problem now?
The answer is a combination of changing demographics and a harsher economy. The older generation have longer lifespans but experience increasing health and care issues, whilst the younger generation is finding it harder to get established in life either due to unemployment, financial problems or difficulty getting a foot on the housing ladder.
So the Sandwich Generation must now face a prospect of retirement with increasing responsibilities and pressure on them financially and physically as they juggle to provide financial support and a roof over the heads of their children well into adulthood whilst caring for elderly relatives whose needs increase as the years go by.
What should they do?
These issues won’t resolve themselves. So proper retirement planning is the only answer. Professional legal advice and well thought out structures such as Wills, Lasting Powers of Attorney, trusts and care planning can all help to avoid a crisis and provide the right framework to enable post-retirement responsibilities to be managed successfully.