FOUR PRACTICAL FINANCIAL TIPS FOR

Four practical financial tips for the ‘Sandwich Generation’

The coronavirus economy has shaken millions of Americans’ confidence in their ability to retire comfortably. In fact, 70% of Americans say the pandemic has made them more pessimistic about their retirement plans, according to a recent Retirement Reset survey. Another survey shows almost half of all parents have given their adult children money during the pandemic, with most saying they’re doing so at the expense of their own personal finances.

Older Gen Xers and younger Boomers in particular have been forced to reconsider or restructure their retirement plans in the pandemic’s wake to account for unexpected obstacles. Namely, adult children who have moved back home by choice or due to lost income, and aging parents who require financial assistance to afford long-term care or their own retirement.

Left to juggle the costly and often time-consuming needs of both dependents, demographers often refer to this select group as the “sandwich generation.” Stretched thin, these multigenerational caregivers—typically parents in their prime working years—are subject to a unique set of challenges that have been further exacerbated, thanks to the pandemic.

Twelve percent of Americans currently fall in this group, according to data from the Pew Research Center. However, this number is expected to rise, as more individuals prepare for retirement and more millennial families delay having children.

If you’re among this group of Americans feeling overwhelmed,thereare several thingsyoucan you dotohelp easethat stress, including:

→ ASSESS YOUR FINANCES

Before you sit down to figure out what kind of assistance you can provideto your loved ones,make sure you have a complete picture ofyour own finances.Establishing boundaries between, what you want to do and what you’refinanciallyable to dois importantand will help you avoidanysurprisesordisappointment in the future.

→ PLAN AHEAD

To help minimize stress and anxiety, establishahealthyfinancialplan,with clear goals tohelpensureyou don’t outlive yourresources.And when it comes to having the income you need in retirement, protected income fromanannuityis a great way toguarantee income for lifeand combat the risk of running out of money. It can help supplementtheother source ofprotectedincome,likeSocial Security, and can be especially valuable if you don’t have a pension.

→ TALK WITH YOUR PARENTS

ABOUT MONEY EARLY

AND OFTEN

Have a candid conversation with your parents about their financial situation and what their needs are before a crisis hits. Make sure you fully understand what funds they have, where they are located, and any penalties associated with early withdrawals.

→ INVOLVE YOUR CHILDREN IN FINANCIAL CONVERSATIONS

While you’re talking over expectations with your parents, take time to do the same with your kids.Maintaining open communicationwith your children, especially when times are difficult, isanopportunity for you to impart important financialeducation and values, priorities and behaviors that will help them makegood financialdecisions when they are older.