Retirementology by Gregory Salsbury

Author:Gregory Salsbury
Language: eng
Format: mobi, epub
Publisher: FT Press
Published: 2010-07-05T21:00:00+00:00

The Club Sandwich Generation

The financial burdens on families are not solely relegated to financial and inheritance decisions. Just ask anyone raising kids and caring for aging parents at the same time.

As the Sandwich Generation, Boomers have been stuck in the middle for years. Now, spikes in longevity, coupled with the effect of the recent meltdown, have given rise to what could be called the Club Sandwich Generation. We are seeing more layers to this family sandwich than ever before with four- and five-generation families becoming more common. Nearly 10 million Boomers are now actively engaged in raising children while providing financial support for one or more aging parents.3 Many feel trapped in the middle, and rightly so. On a daily basis, they can be found balancing the tasks of getting the kids off to school while managing mom’s prescription regimen and doctor appointments. And by all indications, becoming a caregiver for a parent today may require as many or more years than actually spent raising a child.

The toll on families can be staggering, and adults caring for aging parents often struggle with a wide range of mixed emotions. It’s difficult to watch a person you love who was once capable and competent lose his independence. For those witnessing such a decline, sadness often follows, with 91% reporting depression.4 In addition to the emotional burden, becoming the parent of a parent can also bring a heavy physical toll. Caregivers report chronic conditions such as high blood pressure at nearly twice the rate of other Americans.5 The pressures of today’s fragmented families also weigh heavily in the mix, with single moms and dads increasingly caring for an aging parent while trying to hold down a day job. For most, that leaves little time for themselves or any chance of having a social life of their own. On top of it all, when regular income isn’t enough, many are forced to tap into their retirement accounts just to pay the bills.

“My greatest fear,” said one 64-year-old female from our focus groups, “is having to move into the room over my son’s garage. Unfortunately, that’s my son’s greatest fear as well.”

Even when aging parents have the funds to cover their expenses, many fall prey to mistakes and outright fraud. According to the U.S. Office of Community Oriented Policing Services in 2008, consumer fraud estimates show that between 20% and 60% of adults report being a victim or attempted victim of fraud.6 Older Americans tend to be better targets for scams because they have accumulated a lifetime of assets, and more often than not, they have the spare time to attend seminars and listen to pitches. The problem then cascades down to their adult children who not only must spend time trying to recover lost funds, but also suddenly find themselves supporting their parents who no longer have the money to care for their own financial needs.

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