Adults caring for aging parents and children simultaneously have now become known as the "sandwich generation." While each generation comes with its own array of financial challenges, the sandwich generation often feels a tight financial squeeze as they juggle the cost of care for their elderly parents with care for their children. Due to the financial strain, saving for retirement gets put on the back burner.
Don't let your retirement dreams vanish before they get started. Follow these six tips to get your retirement on track while still prioritizing your family.
1. Make Retirement a Priority
With so much to do, it may seem like your priorities are all over the place. No matter what, you may need to consider making your retirement savings a priority, even if it supersedes saving for your children's college. There are plenty of options for college aid when your children get older, and you may be in a better position to pay for those costs when it is time for them to enroll.
2. Properly Insure Yourself
Having adequate life insurance and disability coverage could help you with the financial support of your family if something catastrophic occurs. Life insurance could help cover the costs of your income so that both your parents and children get the support they need if something happens to you. Disability coverage provides you with the money you need to pay the bills if you are unable to work for a while due to a disabling condition.1
3. Grow and Maintain an Emergency Fund
Unexpected costs may quickly put your finances underwater and, in some cases, may be hard to bounce back from financially. Keep an account with funds to address these unexpected expenses and when you have to utilize them, be sure to replenish them.
4. Discuss Finances With Your Parents
While financial conversations may be a little awkward, you need to know your parents' financial situation before you begin paying for their care. Ask them how much they have saved and if they have any insurance policies. Discuss when and if they plan on having you assume complete financial or medical responsibility or if they are going to make those decisions for as long as they are able.1
5. Look at Government Benefits
Make it a point to learn all that you are able to about what government benefits your parents are entitled to. Social Security and Medicare are the largest programs, but there are potentially other financial programs that your parents may qualify for, depending on their situation.1
6. Involve the Family
Caring for your parents should not be something you face alone if you have other siblings or family members. Ask for help from those around you. Even if they are unable to offer financial help, they may be able to provide you with other types of support, such as transportation.1
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
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1. Surviving the ‘Sandwich Generation:’ When Kids and Parents Depend on You, Money USNews, https://money.usnews.com/money/blogs/my-money/2014/07/29/surviving-the-sandwich-generation-when-kids-and-parents-depend-on-you