It’s estimated that around 1.9 million workers aged over 50 find themselves juggling the competing needs of the younger and older generations, sometimes overlooking their own financial planning requirements. As a result, many feel under pressure to go on working for longer; others sacrifice saving for their retirement to help other family members.
The problem is likely to intensify as the younger generation increasingly looks to the ‘Bank of Mum and Dad’ to help with major expenditure such as house purchase. Elderly parents are living longer and need more care. This means that many over-50s are squeezed in the middle and find themselves taking the financial strain. Government statistics show a record number of over-50s remain in work, some from choice, others out of necessity.
Support for children
According to a recent report* almost two in five workers aged over 50 with dependants say they will retire later than they had originally anticipated because their children still need their financial support. Almost a third say their adult children’s financial needs are the only reason they’re still working.
Looking after parents
Many older workers also find themselves helping their parents financially and with their care. More than two in five respondents mentioned concerns about being able to balance their work commitments with their responsibilities as carers.
Pension provision set aside
Worryingly, almost a quarter of over- 50s with financial dependants admitted that they had sacrificed saving for a comfortable retirement to provide financial support for adult children, while 12% of respondents said they had stopped saving completely to support the children and parents who depend on them financially.
Getting the right advice
Whatever age they are, everyone should make provision for their later years. Even small sums saved regularly will go some way towards providing a pension income. Getting good advice will help you work out how much you will have available to live on in retirement, and how you can improve your pension outlook.
*Aviva, Real Retirement Report 2017