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Commonly aged between 45 and 54, the sandwich generation often provides financial assistance and physical care for their parents while also looking after their children. Increasingly, this includes young adults still living at home and needing financial support to kickstart their futures. These additional responsibilities can be costly and reduce your ability to take on paid work, making saving time harder.<\/p>\n
A unique financial landscape<\/strong> Here are some considerations to help you become financially resilient when you\u2019re taking care of yourself and others too.<\/p>\n Joint financial planning<\/strong> If you manage finances collectively, ensure your planning considers all the current and future circumstances that could impact your family\u2019s income. This might include speaking with working adult children or extended family living at home to help them understand how they fit into your family\u2019s wider financial goals.<\/p>\n Think long-term<\/strong> Motivation for the future<\/strong> Review your budget<\/strong> It might help to create different \u2018pots\u2019 for specific purposes or people, ranging from your own retirement, to funding further education, care, housing deposits, weddings and more. You should also consider building an emergency fund for unexpected scenarios, like losing your job or a boiler breakdown. But it\u2019s also important to factor in money for things you enjoy.<\/p>\n Professional financial advice<\/strong> Entitlement awareness<\/strong> You\u2019re entitled to one week of unpaid carer\u2019s leave in the workplace every 12 months, subject to conditions[3]. In this scenario, you should check your employment contract in case your work offers any additional benefits or leave. Some employers also offer discounts and deals through voucher schemes, which might mean spending less on groceries or luxury items.<\/p>\n National Insurance credits<\/strong> Smart debt management<\/strong> Self-care is crucial<\/strong> Reducing your paid work might, in turn, reduce the amount you have in any workplace pension. It could also lessen your National Insurance contributions which influence your State Pension. Obtaining professional advice before reducing your paid work could help you see the bigger picture and still save for your future while supporting your loved ones.<\/p>\n Looking after loved ones can be challenging but rewarding. Encourage your family to come together to be a source of support and motivation for each other. Remember to take care of yourself while caring for others. Taking steps to strengthen your family\u2019s financial wellbeing can also help build resilience in your own mental wellbeing.<\/p>\n Source data:<\/strong> 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.<\/p>\n","protected":false},"excerpt":{"rendered":" Two-thirds of people in the UK will care for a loved one at some point With life expectancy rising and more people starting families later, around 1.3 million individuals in England and Wales now have caring responsibilities for older and younger dependents. If this sounds familiar, you\u2019re likely part of the \u2018sandwich generation\u2019[1].<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/posts\/4828"}],"collection":[{"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/comments?post=4828"}],"version-history":[{"count":0,"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/posts\/4828\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/media?parent=4828"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/categories?post=4828"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/tags?post=4828"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nIf you\u2019re part of the sandwich generation, your financial planning might look different from older generations, who, at your age, likely had fewer expenses and more to save for retirement. However, you\u2019re not alone. It\u2019s estimated that two-thirds of people in the UK will care for a loved one at some point, and half will provide care before they turn age 50[2].<\/p>\n
\nWe all have unique situations \u2013 no one-size-fits-all approach to financial planning exists. Whatever your financial situation, being transparent with your spouse, partner, family or support unit can help. Talking about your plans \u2013 and backup plans \u2013 could help you and your loved ones make the future you want a reality.<\/p>\n
\nThinking ahead can help you plan how to support your loved ones best when they need it most. Try writing a list of things you might want to save for or need to prepare for, like parents going into care, university fees or housing costs for your children, and goals for your future.
\nWhile some people in the sandwich generation might have to consider working for longer or retiring later, it\u2019s essential to think about the lifestyle you want when you stop working. Ask yourself what actions your 80-year-old self would be grateful for you taking now.<\/p>\n
\nA clear, long-term vision can motivate you to take positive and responsible steps for the future. Financial wellbeing research has shown that those with a more concrete vision of their future had less debt and better emergency and long-term savings. Utilising tools to help you picture what your life could look like and tips to help you get there can be beneficial.<\/p>\n
\nWith many things to save for, prioritising is key. You could set mini targets to reach by certain points in time for different needs \u2013 these should be realistic regarding your budget. Consider your income and how much you can afford to save each month.<\/p>\n
\nObtaining professional financial advice could help you understand how to balance your competing financial priorities. An adviser can provide tailored recommendations to help you achieve your financial goals while managing responsibilities.<\/p>\n
\nDon\u2019t miss out on any discounts or benefits. For example, households with children might be eligible for Child Benefit or free childcare hours, depending on your circumstances. If you\u2019re providing care for any relatives or loved ones, government help such as Carer\u2019s Allowance and Carer\u2019s Credit might be available.<\/p>\n
\nIf your parents can still carry out babysitting duties, you might be able to pass over National Insurance credits to them to help boost their State Pension. Understanding the benefits available can help you maximise financial support for your family.<\/p>\n
\nDebt isn\u2019t to be taken lightly, but it\u2019s not always bad. Taking on a mortgage, for example, can give your family the stability of a place to grow and spend time together. However, be careful with what kind of debt you\u2019re taking on. If you\u2019re struggling with debt or loan repayments, many sources of help are available.<\/p>\n
\nCurrently, around 8% of the UK population is providing informal care[4]. If you\u2019re one of them, remember to think about your own future, too. People in mid-life who have caring responsibilities are more likely to reduce the amount of paid work they do so that they can provide care. This is also more common among women than men.<\/p>\n
\n[1] More than one in four sandwich carers report symptoms of mental ill-health.\u00a0Data source, Office for National Statistics, January 2019, accessed May 2024.
\n[2] Will I Care: The Likelihood of Being a Carer in Adult Life.\u00a0Data source, Carers UK, November 2019.
\n[3]\u00a0Unpaid carer\u2019s leave. Data source, GOV.UK, accessed May 2024.
\n[4] Family resource survey: financial year 2022 to 2023.\u00a0Data source, GOV.UK, updated March 2024.<\/em><\/p>\n