THE SANDWICH
GENERATION
Things to consider to make
the Golden years Golden
Written by MICHELLE ONODA
Photography by JOHN MUELLER
If you are part of the 75 million individuals who make up
this nation’s population of baby boomers, you are probably
familiar with the term “Sandwich Generation.” This
term has come to mean adults who are either raising
minor children, or are providing financial and other forms of
support to adult children as well as aging parents.
THE BABY BOOMER GENERATION —
FAMILY TIES THAT BIND
Born between 1946 and 1964, baby boomers are a unique
generation. Now in their 40s, 50s and 60s, and either
approaching or just into retirement, many boomers are seeking
resources that will help them plan or manage their own
retirement, pay for their children’s college education and provide
elder-care services for aging parents.
WHAT THE RESEARCH SHOWS
In a May 2007 study entitled, “Money Across
Generations,” Ameriprise Financial worked with GFK Roper
Public Affairs marketing research to conduct phone interviews
with 1,001 affluent baby boomers in San Francisco,
Miami, Denver and Dallas. The term “affluent” was defined
as boomers with $100,000 or more of investable assets.
The study was a strong wake-up call to boomers, who realized
a lot more stress on their retirement savings than they
had realized.
Even though the children of boomers may have reached
adulthood, boomers are still footing the bill. The study
found that 92 percent, or nine out of 10, have helped their
adult children financially in at least one way. Whether by
helping their children pay off college loans, allowing them to
move home and live rent free, paying off their credit-card
debt or making mortgage payments, boomers are still paying
their children’s bills.
When asked where the money is coming from, 50 percent of
affluent boomers say they are using day-to-day spending money,
while 41 percent state they are using their savings. Only 6 percent
report they are using their retirement savings.
This financial generosity also extends to aging parents.
Pew Research Center reports that approximately 20 percent
of boomers included in their survey are assisting parents
financially.
While generosity may be the hallmark of boomers,
research indicates that the point where such giving intersects
with their retirement savings is a potential blind spot. Have
boomers saved sufficiently for retirement? Not according to
published findings from the Employee Benefits Research
Institute. The research reveals that retirement savings rates
for boomers are too low, and many are overconfident in their
ability to fund their retirement.
WHAT TO DO?
First, boomers need to run the numbers to make sure that
they are on target or making necessary adjustments to have
sufficient income for their retirement years. What next?
Many, if not most, boomers are or will soon be assisting children
and aging parents financially; thus these figures must be
factored into the overall picture.
WHERE TO BEGIN?
We are still largely a culture of silence when it comes to
the topic of money. Indeed, many boomers agree their parents
rarely spoke about the topic of money, so the place to
start is by having honest and open communication about
financial needs.
CHILDREN, COLLEGE AND FINANCES
Preparing our children to be successful adults is a goal
of most parents. With college costs at an all-time high,
many parents are looking for ways to pay for higher education,
whether it is through investments earmarked for college,
College Savings Plans, loans, scholarships or work
programs. Several resources are available that can help
identify costs and available assistance. Two Web sites,
www.collegeboard.com and www.finaid.org, provide college
calculators to determine costs. To assess what financial
aid may be available, visit www.fafsa.ed.gov. These
resources will provide a good idea of what is available for
your particular circumstance.
AGING PARENTS
Specialists who advise the Sandwich Generation on their
aging parents caution that when it comes to making decisions,
the objective is to empower parents so they retain as
much dignity, independence and control as possible.
When assessing potential needs, experts stress the importance
of getting all the facts. Talk to your parents about
whether they have long-term-care insurance or enough savings
to cover costs, should the need arise. This would also
be a good time to make sure their personal papers are in order — wills, trusts, durable power of attorney, etc. With those items
completed, it is a good time to check
out available resources.
The Internet is a valuable resource
for useful information. You may want to
visit a few of the following Web sites:
• www.eldercare.gov — a site sponsored
by the U.S. Administration on
Aging
• www.benefitscheckup.org — provides
information on federal, state and
local benefits
• www.medicare.gov — a government
site for people who qualify for
Medicare
• www.seniorsresourceguide.com —
provides an array of services and retirement
communities available in the area.
Denver has many outstanding
retirement communities, and one of
the best-known is Park Place
Retirement Community. This is part of
the Heritage Club Senior Living
Network, which includes three of
Denver’s most respected retirement
communities focused on independent
living, personalized assisted living and
Alzheimer’s and dementia care. Park
Place residents can enjoy luxurious
independent retirement apartments in
beautiful surroundings while enjoying
the ultimate in care and services.
Wind Crest by Erickson provides fullservice
retirement living that accommodates
all levels of care. A full onsite
medical center is staffed with board-certified
physicians. A stroll through the
spacious clubhouse reveals a fitness
center, indoor pool, convenience store,
library and two restaurants. The property
is situated on a lush hillside overlooking
the Front Range and downtown
Denver skyline.
PUTTING IT ALL TOGETHER
Balancing priorities is not easy for
boomers. Spreading financial resources
across three generations can be a real
challenge. According to Dr. Janice
Wassel, director of the gerontology
program at UNC Greensboro, boomers
should be a little selfish and save for
their own retirement. Talk to your children
about finances, and share with
them the preparation you have made
for your own retirement. By having
frank financial discussions about
money today, you can help family
members make smart money decisions
as they navigate through their
own lives toward their retirement.
