More and more individuals are falling into what’s known as the sandwich generation and seeing financial problems arise as a result. This generation is the aptly named group that’s sandwiched between obligations to care for both their children and aging parents at the same time.
Being torn between the want to care for both groups (and yourself) can be tricky and expensive, but that doesn’t mean it’s not feasible. Here are some focal points for how the sandwich generation can plan for retirement:
Keep your retirement savings on track
It might be tempting to throw your retirement saving and investing plans out the window to help care for both generations of your family as much as possible. When you encounter this temptation, you should realize that there are other solutions, and that this may cause more harm than good.
Ceasing your 401(k) investments, for instance, can create a domino effect that could throw your entire retirement plan off track. In addition, your children may end up in the same exact situation if you haven’t adequately prepped for your own retirement. Overall, the sandwich generation can plan for retirement by ensuring their own financial future is secure first.
Reduce costs for your parents
There are most likely better solutions than borrowing from your 401(k) to assist your aging parents. By coming up with a financial roadmap for realistic costs that you can support, you can examine where to reduce your parents’ expenses.
A great way the sandwich generation can plan for retirement is by examining the plethora of options to trim down retirement costs. Relocation in retirement, for example, is a solution that can reduce living and healthcare costs for your parents (it might even allow them to live closer by too).
Set firm boundaries for adult children
The sandwich generation can plan for retirement by also setting boundaries and plans in place for their adult children. If your child is asking for unnecessary costs that put your own retirement at risk, you should consider saying “no.” College expenses are a big example: while everyone would love to support their child’s education, they should realize that there are multiple loans available for education, but few to none for retirement.
Want to learn more about how the sandwich generation can plan for retirement?
At LexION Capital, we’re fiduciary advisors who can help you navigate a smooth retirement through complex financial challenges. We work individually with each and every client to construct an investment portfolio that meets their needs and goals. Don’t hesitate to reach out today to learn more about how we can help you ensure a smooth retirement.