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Feeling Squeezed? You Might be a Sandwich

Feeling Squeezed? You Might be a Sandwich

Millions of Americans worry about saving enough for retirement, while also providing for their children’s future. However, most overlook another set of dependents who could cost them even more: their parents.

The phrase “sandwich generation” is used to describe people who are caring for their parents and their children at the same time. The number of people who fall into this category is growing, according to an article from The Motley Fool, “How to Help Your Parents Retire Without Derailing Your Own Retirement.” A survey found that about 16% of Americans are currently caring for an elderly relative, and this number is expected to double within the next five years.

What’s worse, very few people are planning for this situation.

Planning is the only way to stop what has been called a self-perpetuating cycle. Without planning, caring for parents could derail your own retirement, making you need the support of your children when you get older, and while your kids are trying to save for their children’s college educations and preparing for their own retirement. Sound familiar?

What can you do to prevent this cycle?

See if your parents qualify for any assistance programs. There are government and private programs to help with housing, food, utilities and healthcare. The programs vary by location and the situation of the people who are seeking help, but there is help, if you know where to find it.

If parents are over 65, there is something called Supplemental Social Security Income, or SSI. This is in addition to the regular Social Security benefits and might be enough to close the finance gap. In 2019, SSI provides up to $771 per month for an individual or $1,157 for a couple, if the requirements are met.

Cost cutting. If your parents don’t have a budget, help them create one so you can all be aware of how much money is coming in and how much is going out of the household. Could they tighten their discretionary spending? They could also consider a reverse mortgage on their home, if they have enough equity. Are you willing or able to have them come live with you?

Selling items could also free up cash for living expenses. If they have a house filled with memorabilia, or valuable antiques, and are willing to do so, they can combine downsizing with making some income.

Creating a plan. Get everyone in the room—parents, siblings and spouses. Discuss the challenges ahead and make sure that everyone is clear on what expenses everyone can help with. Housing and healthcare are necessary. Luxury cars and vacations are not.

If the adult siblings need to adjust their own spending to help the parents, be realistic with each other. How much are you able to contribute, and how much are you willing to contribute? No one sibling should have to shoulder the burden themselves, unless they are wildly wealthy, and it won’t make a dent in their lifestyle.

Along with the financial planning, make sure that your parents have an estate plan. They’ll need a will, a power of attorney for finances and a healthcare power of attorney. The cost of working with an elder law attorney to ensure that this is in place, is far less than dealing with court proceedings, if you need to pursue guardianship or settle the estate without a will.

Reference: The Motley Fool (Aug. 25, 2019) “How to Help Your Parents Retire Without Derailing Your Own Retirement”

Hear From Our Clients
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“On the threshold of retirement, we finally decided to quit thinking we could self-prepare the requisite documents. We had previously had only a very simple will. We needed the necessary legal (including updated will) & health care docs but didn’t want to deal with the time & complication of legalese. Cindy made the process relatively painless. She took the time to explain and answer questions without trying to upsell services. We were done in 2 meetings plus the reading of emailed drafts. In addition to preparing the documents, Nelson Eldercare will be there when our adult children need advice on executing the plans we’ve put in place.So glad it’s behind us and would recommend Cindy and her helpful staff.”

- Bonnie

Cindy and her company treat their clients like family. Nelson’s offers clear, direct, and honest guidance in planning for your families security and future. No one wants to actively sit down and make these decisions, but Nelson’s makes this process seamless. I was so impressed with their willingness to answer all questions big or small. So glad I made the decision have them help my mom and dad and now me. You can’t go wrong with Nelson’s Elder Care Law.

- Hope

The very best elder law attorney and staff anyone could ever ask for! I have referred a number of clients to Cindy and she never disappoints. She is kind, caring, and extremely thorough in making sure everything is completed as it should be. I highly recommend Cindy for anyone needing lawyer services; she truly goes above and beyond for every client she helps and has had a huge impact in so many peoples’ lives. Thank you, Cindy and staff, for everything that you do- I’m so glad to know you!

- Kerri

I heard Cindy’s presentation at a Senior Luncheon at my church, and was very impressed. She helped my daughter and me understand many aspects of elder law. Josh has also been very helpful in my planning to enter an independent living situation . I have told many friends about them.

- Charlotte

Cindy and the Nelson Elder Care Law team are trustworthy and helpful. They are the experts in elder care law. At Leaf Cremation, we entrust our families to the care of the Nelson team when their services are needed.

- Pierce