As more people are living longer, many adults in their 30s to 50s are forced to take care of their parents financially. Known as the “sandwich generation” these adults are dealing with family-related financial pressures and are neglecting their own retirement accounts. Many in this generation are supporting both their aging parents and their own kids at the same time. If you find yourself in this generation and are feeling a financial pinch, here are some tips to help you relieve some of your retirement stress.
Since you yourself have the potential to live much longer than you think, you should consider putting your retirement at the top of the priority list. Although it may seem impossible to save more money with the already existing financial pressures, you need to try and contribute some of your income towards your retirement. If you have very little to spare, at least match what your employer matches in your retirement account.
On the flip side of this coin, try to avoid drawing money from your retirement account until it is time to actually retire. Stay away from taking out loans against your 401(k) or any other type of withdrawal that incurs financial penalties. If you do take money out of your retirement account, you jeopardize your own financial future and may one day find yourself having to be supported by your own children.
If you are helping your elderly parents financially, educate yourself on their current financial situation. Determine how much of your parent’s income is spent on discretionary expenses vs. living expenses. Make it a point to learn as much as you can about your parent’s health care costs. Find out if your parents have any type of long-term insurance for elderly care. This could help alleviate some of your financial burdens.
HCR Wealth Advisors is a registered investment advisory firm that helps its clients reach their financial goals through financial planning and education. HCR Wealth educates its clients on investment strategies and helps them create personalized financial portfolios. Follow @HCRwealth on Facebook for more financial tips.
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