The recession has been tough on all Americans, but a recent survey of the “Sandwich Generation” found 78 percent of those polled are worried about having enough money to retire comfortably. As a result, 23 percent have restructured their retirement plan in the last year due to financial reasons.
Defined as those who are responsible for supporting both their children and parents, the Sandwich Generation has been forced to make serious cuts in their spending habits to survive during the recession according to a survey data released by Generation Mortgage and Zogby International.
”The Sandwich Generation is probably the most financially vulnerable demographic to result from the recession,” said Jeff Lewis, Chairman, Generation Mortgage Company. “They are unemployed or under-employed, financially supporting two generations in their family and are saddled with debt from bills and a mortgage. As this group looks to retire, their financial situation, coupled with the state of the economy, is not leaving them with many options.”
According to the Pew Research Center, just over 1 of every 8 Americans aged 40 to 60 is both raising a child and caring for a parent, in addition to between 7 to 10 million adults caring for their aging parents from a long distance.
Of those polled, seventy-three percent have decreased spending on entertainment, recreation or eating out. Moreover, 43 percent have decreased overall spending on food or groceries and three out of five of those polled say it is difficult to be a caregiver for their parents and/or in laws while financially supporting their children.
Even more distressing, 52 percent responded that they plan to work part time during retirement to make ends meet.
“As the Sandwich Generation looks towards retirement,” commented Lewis, “they should become educated on their available financial options. One of the financial options that is often overlooked is a reverse mortgage.”