Some members of the sandwich generation are in a retirement pickle
2-minute read
Are you a member of the so-called “sandwich generation”—people who are sandwiched between the responsibilities of caring for aging parents and raising their own family?
If you are, you’re definitely not alone, says Empower, administrator of your Texa$averSM 401(k) / 457 Program. An estimated 80 million Americans are caring for children and elderly parents at the same time. But unlike other generational groups that are defined by age—such as Boomers and Generations X, Y, and Z—anyone can find themselves a member of the sandwich generation.
In addition to the emotional stress and time demands that come with caring for multiple generations of loved ones, “sandwiched” adults also face unique financial challenges. For example, nearly half of such adults say they have had to take on credit card debt, with an average card balance of roughly $13,000.
As you hustle to give your children the attention they deserve and meet the needs of aging parents—while still juggling all the work and personal demands of your own life—it can be easy to overlook your plans for retirement. After all, retirement may still be decades away, and the needs of the here and now can’t wait. But it’s important to keep working toward your retirement goals at every stage of your life because, ready or not, the future is still coming.
Some of the things you can do include:
- Reassess your future income needs – As a member of the sandwich generation, you probably have a firsthand view of the financial challenges your parents are facing. Use their example to help you clarify your own estimate of your future finances — especially related to healthcare and long-term care spending.
- Continue to pay yourself first – When you contribute to your employer-sponsored retirement plan account, you’re paying yourself first. Your contributions come out of your paycheck before you have to pay other expenses, so you’re making your future financial wellness a priority. You can’t change your required contribution to the State of Texas Retirement defined benefit retirement plan (a.k.a your pension). But you can adjust the amount you set aside to your Texa$aver account (a defined contribution plan) any time by logging in to your account or by calling the Texa$aver customer service center.
- Consider a contribution increase – Even though your budget may be tight, you may be entering the peak earning years of your career. Avoid the temptation of putting your contributions on hold and consider raising your contribution amount if possible so you stay on course to reach your retirement income goals. The monthly impact on your net pay may be less than you expect if the contributions are taken pre-tax (not Roth), as this lowers your taxable income.
Preparing for your own future isn’t selfish. By prioritizing your own financial well-being, you can make the future of others easier as well. The more you can secure your financial future, the less you may need to depend on the people you love when you’re older.
Use the financial tools and resources in your Texa$aver retirement dashboard or make an appointment to speak with a Texa$aver Retirement Plan Advisor who can evaluate your full financial picture. Texa$aver Customer Service Representatives are available toll-free at (800) 634-5091 or via TTY at (877) 606-4790 Monday through Friday, 7 a.m. to 9 p.m. and Saturdays, 8 a.m. to 4:30 p.m. CT.