The sandwich generation are certainly used to challenges and putting other people’s needs before their own. However, cost-of-living challenges looks set to heap further pressure on this group which makes it vitally important they seek advice before taking any rash decisions which could sacrifice their financial futures.
Stiff upper lip
Research1 suggests that, although many over-45-year-olds have found themselves facing potential financial vulnerability, they tend to keep this firmly to themselves. In total, seven out of ten respondents had personally experienced such a situation, but few said they had been willing to ask for help.
Other analysis2 shows the potential for such problems is mounting. This is because people who provide support to adult loved ones will typically be hit twice by the cost-of-living crisis; not only will they find their own household bills rising but also those of the people they are supporting financially. This is particularly true for people in their early 40s who are most likely to be helping family members with the cost of monthly essentials.
Investors ponder contributions
There is also evidence that rising cost pressures are now resulting in people cutting back on their long-term savings commitments, with recent research3 showing one in four investors halting contributions to ISAs and pensions. Depending on your circumstances, for many investors, it may be more important than ever to continue to put long-term savings in the stock market. Over the longer term, investing in equities can be regarded as an effective way to keep pace with inflation.
We can help
Although it can seem unnatural for members of the sandwich generation to consider their own needs, we are here to listen, support and provide advice when you need it. So if you do need to talk, get in touch and we’ll do our best to help keep your finances firmly on track.
1Just Group, 2022
2Legal & General, 2022
3interactive investor, 2022
The value of investments and income from them may go down. You may not get back the original amount invested. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation. Inheritance Tax Planning is not regulated by the Financial Conduct Authority.