George Martinureports that the squeezed middle are using funds to support dependants rather than to save for the future
Two-fifths (38%) of working people are concerned that they will be a financial burden on their children in the future, new research from Wealth Wizards suggests.
The report states that the ‘sandwich generation’ of workers, who are currently responsible for both looking after their children and their parents or other dependents, may be forced to make sacrifices to their own financial security to support the various generations of their families. For example, two thirds (66%) of respondents said that they would rather save spare income to help their children get on the property ladder than put it in their own retirement fund.
On top of this, just under half (46%) don’t think they’ll be able to save enough money for a pension until their children leave home, and a third (32%) are unable to save for a pension until their parents pass away. For the generation whose parents are yet to retire, there is a similar fear, with a quarter (23%) worrying that they will have to support their parents in retirement.
Phil Blows, Director at Wealth Wizards, said of the study: “The cost of living, of education and even healthcare consistently increases and those who are caught between supporting two generations, as well as themselves, have it harder than most.
“It is important for those who find themselves in this position to do what they can to break the cycle. While looking after their loved ones is of course a priority, it is important that they also make provision for their own retirement, in order to avoid presenting the same dilemma to the next generation. Luckily, digital advice solutions are available that can help individuals take stock of their own incomings and outgoings and receive advice on how best to use any surplus”.