It’s not always a good thing to be the middle. For the children of baby boomers, the middle can be a financially stressful place.
Often called the sandwich generation, children of baby boomers tend to be financially strapped funding their children’s college educations, their own retirements and their parent’s lifestyles at an age when health care costs can increase dramatically.
“The stresses are real, but families from all backgrounds can get through the period of college tuition payments, retirement finances and caring for aging parents with a little planning, diligent saving and knowledge of their financial situation,” says Tara Reynolds, corporate vice president with Massachusetts Mutual Life Insurance Company (MassMutual). “The most important thing families can do is to evaluate their present financial situation honestly with a trusted financial professional.”
Jeff Duncan, a MassMutual agent based in New Jersey, notes there is not a one-size fits all solution.
“This is a challenging place to be for many baby boomers. By understanding each family’s unique needs there are various ways to solve for the best outcome,” he says.
Here are some tips to get your family conversation started and on a workable path:
The sandwich generation tends to be bombarded with financial demands from all directions, but the children of baby boomers don’t have to put their retirement planning on hold. Following these tips can help you avoid the stress that can result by failing to plan.