Shouldering significant responsibility – caring for children as well as an older relative or friend – means this group is more likely to worry about the impact of a financial shock on their dependents. More than half (52%) are worried about the consequences of a serious illness affecting themselves or their partner in the next 12 months (versus 35% national average). They are also nearly two times more likely to worry about the prospect of themselves or their partner dying and leaving the family without an income (30% compared to 17% national average).
The research, which is part of LV=’s upcoming ‘Income Roulette’ report, also reveals the Sandwich Generation are unprepared for the longer-term future. Nearly two in five (37%) have less than £125 disposable income each month, with nearly half (46%) citing their children as a constant source of unexpected expenses. More than half (54%) say they want to save but can’t afford to do so – which also means they struggle to top up their pension pots. On average, this group has around £60,000 to retire on, while expecting their funds to last around 20 years, which would provide a monthly income of less than £260.
Justin Harper, Head of Marketing at LV=, said: “It is clear this group feel they are being pulled in many directions, with pressures to care for older relatives and ongoing responsibilities for their children. The Sandwich Generation have huge financial obligations and with the rising cost of living, are worrying more about what could be around the corner. Spreading their finances too thinly and dwelling on their worries, means the impact of having little or no plans in place, could expose them to a real income shock.
“Getting a better understanding of the options available is essential to being prepared for a more secure financial future. This can provide peace of mind against income shocks, such as not being able to work due to illness and can help them ensure they are putting away what they need for their retirement.”
Nearly three in five (57%) of people within the Sandwich Generation fall short of the Money Advice Service (MAS) recommended amount of savings to be financially resilient and more than a third (34%) don’t feel they could handle a personal financial crisis.
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