Pension & retirement
Tim Ross
Tim Ross, IFA discusses how those within the so-called Sandwich Generation can plan ahead and save for the future.
Life expectancy is continuing to rise. Couple this with individuals starting families later in life, means that more people are taking on responsibilities for both younger and older dependents at the same time. Otherwise known as ‘The Sandwich Generation.’
It’s thought that up to 6 million people in Britain are within this demographic [1]. Typically, between 45-55, the sandwich generation often provide physical and financial care for their children and their parents.
With an additional layer of responsibility, saving and forward planning can become more difficult. So, what should individuals within this generation be considering to help boost their financial resilience?
If you are within the sandwich generation and are caring for others, forward planning on how to best support your loved ones can be invaluable. Whether it’s university fees, housing costs or care plans, consider noting all the factors you may need to save and prepare for at a later date.
For some individuals within the sandwich generation, this might involve delaying imminent retirement plans, allowing them to save with access to their income for a longer period of time.
Having additional outgoing means that prioritising is key when it comes to saving. Setting smaller, realistic saving targets, within a set period of time can really help the sandwich generation in the long term.
Creating allocated savings pots for specific people, or purposes, such as retirement, university, care, or weddings, could also be very helpful when it comes to planning saving. If possible, this should also include an emergency fund in case any surprises crop up.
Make sure you take the time to research any discounts or benefits that you may be eligible for. If you have children, free childcare hours and/or Child Benefit may be available to you. Or if you are caring for relatives, you could qualify for Carer’s Allowance. You can find information on all these support measures on the Government’s website.
As a carer, you are entitled to a week of unpaid carer’s leave every 12 months, but it is also worth checking your contract of employment. Your workplace may offer additional benefits or carers leave on top of this.
If your parents still look after your children, you may be able to pass over National Insurance credits too. This can help to bolster their State Pension and in turn maximise the financial support which is on offer for your family as a whole.
Caring for loved ones is undoubtedly rewarding. But that’s not to dismiss how overwhelming it can be, especially when it comes to your finances.
Seeking professional advice before making any alterations to your working patterns could make a huge difference. An adviser will look at the bigger picture and potentially offer strategies and support to help you save for the future, whilst managing your current responsibilities.
Please feel free to get in touch if you are looking for any information or support when it comes to managing your finances and balancing your responsibilities.
Source data:
[1] 6 million sandwich generation in UK. Data source, Office for National Statistics, March 2022, Accessed October 2024
THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.
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