Sandwiched Between Financial Burdens

Daily Stat | February 06, 2013 | Topics: Investing for Income,  Retirement 

15%: Middle-aged Americans providing financial support to both an aging parent and a child

You may be familiar with Generation X or Y, but have you heard of the Sandwich Generation? This group is sandwiched between two generations: a parent age 65+ and a child (either below the age of 18 or a grown child receiving financial support). As might be expected, nearly 4 in 10 say both their grown children and their parents rely on them for emotional support. However, according to a recent Pew Research study, about 15% of them are also providing financial support to both an aging parent and a child. Of those providing support, only 28% say they themselves live comfortably. The financial burden has been mounting in recent years, with increased pressure coming primarily from grown children rather than aging parents. This may be because the slow economic recovery has taken a toll on the wages and employment of young adults.

Plan ahead for both you and your children. Work towards a comfortable retirement by contributing realistic amounts to a 401(k) savings plan. Make sure your children have a strong foundation by establishing a 529 college savings plan.

Source: Pew Research Center, "The Sandwich Generation," 1/30/2013

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