You are here: Home - Saving-Banking - News -

Sandwich generation’s finances spread too thinly

Written by:
The UK’s ‘sandwich generation’, those people looking after both children and elderly parents, are increasingly concerned about their overstretched finances.

Around 2.4 million people, typically aged between 40 and 60 years of age, currently shouldering some degree of financial responsibility for both their offspring and older relatives are increasingly concerned about the strain on their finances. Most can’t afford to save, believe their pension income will be inadequate and are worried about becoming ill or dying and leaving their families in financial difficulty.

According to a report entitled ‘Income Roulette’ published by insurer LV=, more than half of this group (54%) say they want to put money aside into a savings account but can’t afford to. Some 32% of this group has less than £125 disposable income per month, with 46% citing their children as a ‘constant source’ of unexpected expenses.

On average people in this group will retire with a pension pot of around £60,000, which would typically equate to a monthly income of around £260.

More than half of them (52%) are concerned about either themselves or their partner developing a serious illness in the course of the next 12 months which could impact their finances. That compares with 35% of the national average.

And they are almost twice as likely to worry about dying and leaving their family with no income – 30% of the group cite this as a concern, compared with 17% as a national average.

Justin Harper, head of marketing at LV=, said: “It is clear this generation feel they are being pulled in many directions, with pressures to care for older relatives and ongoing responsibilities for their children. The Sandwich Generation have huge financial obligations and with the rising cost of living, are worrying more about what could be around the corner. Spreading their finances too thinly and dwelling on their worries, means the impact of having little or no plans in place, could expose them to a real income shock.

“What this tells us is that there’s a huge latent demand for advice that spans protection and retirement planning. Whether that’s safeguarding their income during their working life or considering an investment strategy for their retirement that delivers both growth and security, as well as ways to supplement their income in retirement.”


There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

Your rights for refunds if travel is affected by strikes

There have been a wave of strikes this year across many different industries, and more are planned over Christ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week