Sandwich Generation Feeling Squeezed
Lina Ko January 7th, 2010
According to a poll released this week by The Investors Group, Canadian boomers are stressed by the dual responsibility of taking care of both their own children as well as their aging parents. In some cases, providing extended financial support may jeopardize their own retirements.
Ten percent of boomers with children also provide support to aging parents, with 42 percent stressed by the dual role. The same report indicated that boomers are not whining about it. Two-thirds feel they are merely repaying their parents for the upbringing they enjoyed themselves as children. However, they are less keen to give money to their adult children. In fact, 25 per cent are bothered by the need to provide financial assistance. Six in 10 boomer parents provide an average of $3,675 a year to their grown kids.
This could jeopardize their own retirements if providing such assistance runs longer than expected. According to retirement planning experts, the sandwich phase may be temporary, but boomers should make it as temporary as they can. This should not be a full-time, long-term solution for grown children. On the other hand, waiting for inheritance is not a good strategy for boomers either. People are living longer and spending more. Based on this recent poll, the wealth transfer is going in the opposite direction. Whether it’s taking care of their aging parents or paying a steep price for parenthood, boomers should involve their financial advisors when gauging the impact of these duties on their future retirement.
