Although I hate to admit it, I am officially middle aged. As tough as it is to no longer be young, it does come with certain benefits too. I consider myself blessed to be at an age where I not only have young children in my life, but also parents who are still healthy enough to spend time with. However, as the years continue to add up, I become more and more aware of the financial challenges that could potentially come from being part of the “sandwich” generation.
For those unfamiliar with the term, the sandwich generation refers to those middle-aged individuals who are stuck trying to support both children and aging parents at the same time. As you might expect the difficulty of such a task is significant, and the more that can be done now to avoid such a situation the better.
I’m sure many of you reading this are baby boomers and may be concerned about the burden you might put on your adult children later in life. If that is a fear of yours the most important thing you can do is to work with your financial advisor to put a solid financial plan in place that includes both the proper levels of insurance and savings to ensure you are never forced to become reliant on your children for your care and well-being.
As a middle-aged individual myself, I have come to the realization that unfortunately there is little most of us can proactively do to protect ourselves from someday being forced to care for an aging parent if the need arises. Most seniors I have found do not want money advice from their kids. With that being said, there are still steps you can take to avoid finding yourself sandwiched between two generations both needing your help.
The biggest thing you can do is teach your children a strong work ethic and how to be self-sustaining. Unfortunately, that is something too many of us in Gen X have not done well. According to a recent study by savings.com, nearly half of all parents of adult children are still supporting them financially. According to the study, on average, parents providing financial support give $1,384 to their children monthly. Sadly, that’s more than twice what the average working parent contributes to their own retirement.
Too many middle-aged people are sacrificing their own futures for the futures of others around them. If this trend continues, we will be facing even more financial challenges down the road as a nation. Now is the time to not only expect, but demand all able adults take the steps necessary to be self-reliant. For some seniors it may mean rejoining the workforce, or reducing their overall lifestyle. For young people, many must lose the sense of entitlement they have developed and do what it takes to pay their own way.
Finally, for those of us caught in the middle, we must let go of the guilt we may feel in not supporting our adult children or our parents. It may not be easy, but it may be necessary. Study after study shows that middle aged Americans have not saved what they need to in order to retire comfortably. That must be priority number one. Even if it means having less to give to others.
I know all of these things are easier said than done. We are living in difficult times and these challenges we all face are likely to get harder before they get easier. However, the more intentional we can be in the decisions we make, the more likely we are to not only ensure our own success, but also the success of loved ones around us.
(Past performance is no guarantee of future results. The advice is general in nature and not intended for specific situations)