The 17 million ‘sandwich generation’

New research from a major insurer¹ shows that although as a nation we are happier than we were a few years ago, the picture differs markedly by age group.

Those in their 40s and 50s are likely to be less happy and more anxious. This age bracket often faces a variety of financial challenges such as raising and supporting their families, whilst at the same time looking after older family members too. For this reason, they have been dubbed ‘the sandwich generation’

FACING THE FUTURE

Although the sandwich generation earns more than other age brackets, it tends to have less capacity to save. Life may be said to begin at 40, but it also appears to be the age at which our financial burdens are at their heaviest. However, it’s important to remember that some people aged 45 to 54 could be facing no more than 15 more years of employment before they’re hoping to retire, so it’s vital to keep track of how your pension pot is doing, and save as much as possible to ensure a comfortable retirement. At the same time, many parents of this age are facing the prospects of their children going to university and needing help with the fees, or older children wanting money for a deposit for a first home. Whilst many are hoping that their own parents will leave them a reasonable inheritance, with life expectancy increasing and care costs rising year on year, this is by no means certain.

TAKING ADVICE PAYS

If you’re part of the sandwich generation there may be lots of calls on both your time and your cash, but it’s important not to lose sight of your own financial security. A financial review will help put things in perspective and ensure you have a realistic plan in place for the future. It’s important to remember that there are many tax-efficient ways to save and invest; even small sums saved regularly can make a real difference.

 

¹ Aviva, 2017