The sandwich generation

Many women today find themselves in the challenging position of caring for aging parents while also raising their children.

According to the 200w8 Census Report, 42 million women in America fall into this category — coined the Sandwich Generation.

In this role, women are often stressed by the needs of their parents and children, while also allocating energy to marriage, retirement planning and other important issues.

Like many domestic responsibilities, women often bear more weight when it comes to caring for parents and children. 

To ensure you achieve your own goals, it is important to be clear about your expectations and needs while accommodating others.

Creating balance

As a mother and daughter, it is natural for you to want to do everything you can to care for your children and aging parents. 

The important thing to remember is not to do it at the expense of your own well being. 

Your family will benefit from your own health and financial independence, so it is important that you make yourself a priority.

Caring for elderly parents while also providing for your children is an expensive proposition. 

While you may have to meet certain financial obligations, it is important that you keep your own financial objectives in mind. 

Here are some things you can do to help balance your needs with those of your family:

Preserve your retirement fund. Your children can apply for loans and financial aid for college — there are no loans for retirement. 

Your parents probably have assets that can be used toward their care and medical benefits.

Keep saving. Even if you have to use your current income to help supplement your parents’ care while running your own household, don’t stop saving for retirement. By saving for retirement, you are helping to ensure your own financial future, which will put you and your children in a better financial position when you get older.

Communicate. Talk to your parents about their own retirement planning and discuss the possibility of having them obtain long-term care insurance. Long-term care insurance can help secure your parents’ choices without putting a financial burden on you.

Talk with your children, too. If you have younger children approaching college, explain to them that they may need to take on more of the financial responsibility of funding their education.   For adult children who have moved back home because of their own financial struggles, set parameters around how much you are willing to support them financially and a timeline for them to find a place of their own.

Plan ahead. Having a plan in place for your own retirement, as well as your children’s education, may help to alleviate how tightly your needs are squeezed in between your parents’ and children. 

Your plan should include a way to grow your assets while saving for retirement and protect your assets when you retire. 

Don’t forget to take into account your own potential medical needs in retirement and the possibility that you, too, may someday need long-term care.

If you are part of the growing sandwich generation, you face unique challenges to your retirement and your planning needs may be more complicated. To help keep your retirement plans on track, consult with a financial professional.

For more information, tips, and strategies for planning for retirement, visit AXA Equitable’s Online Learning Center.

This article is provided by Stacie Nishimura. She may be reached on Kauai at 241-7701 or at stacie.nishimura@axa-advisors.com.