Advisors Can Be Heroes for the Sandwich Generation 

It’s a pickle for the sandwich generation: Not enough bread to go around. 

More than half of American caregivers (who make up nearly three in 10 of the population) said that caregiving responsibilities have impeded their ability to save for retirement or manage their household finances, according to a recent EBRI retirement confidence survey.  It’s even more strained for those simultaneously caring for children and aging parents, about one in four US adults. Not only is it a financial challenge, but also an emotional one that advisors may find themselves tackling with their clients. Advisors can help their clients meet the challenge by creating a financial roadmap that aligns with their priorities and protects their own retirement. 

“The first part of the conversation is just providing that space to hear, ‘What’s going on? How are you feeling about it?’” said Sofia Figueroa, an advisor at Ellevest. “The next is really establishing what is actually the most important to my client … What are the right boundaries to set if we can’t necessarily accomplish providing all the time and all the resources to everyone involved.” 

Spread Too Thin

Saving for retirement while contributing to a child’s college fund or a parent’s healthcare needs can be stressful, but, as on an airplane, it’s important to put on your own oxygen mask before helping others, said James Jacobson, an advisor at Girard. “I always think, boy, that sounds awful selfish. But if you’re dead first, you can’t help anyone,” he said. Likewise, “if you’re broke first, you can’t help others.” 

It’s also important for clients to have the hard conversations about money and caregiving with their families as soon as possible, Figueroa said: 

• If the conversation happens before any significant health or financial events, clients can overfund their retirement now to allow them to shift priorities in the future, or adjust where they allocate their savings so those dollars are more flexible. 
• Clients should make sure their own insurance, whether that’s life or disability insurance, is up to date, so if something happens to them, the people financially depending on them have some protection. 

Don’t Let the Bread Get Stale. Clients in a sandwich-generation situation can find that their circumstances change quickly, said Harman Johal, an advisor with US Bank Wealth Management. Advisors should “have more frequent touch points with these individuals, so that you can get ahead of certain situations or advice or planning,” he said. “Things are going to evolve and change more frequently than with some other clients.”