Sydney mum-of-two Sinta Velasco is part of the ‘sandwich generation’, supporting her young daughters and an ageing family member. (Source: Supplied) <\/p>\n
Around 1.5 million Australians are part of the \u201csandwich generation\u201d<\/a>, a growing cohort of people supporting both their kids and their ageing parents. Along with the emotional and physical toll this can bring, being caught in the middle can also add serious financial pressures now and into retirement<\/a>.<\/p>\n Sydney woman Sinta Velasco is part of the \u201csandwich generation\u201d and is juggling raising her two young daughters and supporting an elderly relative in the Philippines. While the 45-year-old people and culture manager is still some time away from retirement<\/a>, she told Yahoo Finance it was something that weighed on her mind.<\/p>\n \u201cI was thinking in the back of my head, \u2018What do I do? How do I prepare for this? Will I still be able to maintain a similar living standard?’\u201d she said.<\/p>\n RELATED<\/p>\n \u201cThere are a lot of questions in terms of the future, and I know that sometimes when you blink, the future is now.<\/p>\n \u201cThe other thing is because we\u2019re migrants, we don\u2019t really know anybody personally who has retired, so we don\u2019t have that lived experience and wisdom that comes with it.\u201d<\/p>\n Velasco moved to Australia from the Philippines eight years ago. She and her husband have been helping to financially support<\/a> her mother-in-law, who will turn 90 next year, with her everyday living expenses.<\/p>\n For their kids, aged 10 and 14, the biggest expenses are schooling and extracurricular activities. They are also juggling a mortgage<\/a>.<\/p>\n \u201cI know we\u2019re very lucky at least to have that start. But it is huge. Now that the interest rate<\/a> has decreased, I feel a bit better about that,\u201d she said.<\/p>\n Do you have a story to share? Contact tanika.seeto@yahooinc.com<\/p>\n New AMP data found \u201csandwich generation\u201d Aussies in their 40s were among the least financially confident about retirement<\/a>, with three in five feeling financially insecure.<\/p>\n Previous research by the financial company found half of people under 40 expected to financially support their parents as they get older.<\/p>\n AMP Director for Retirement Ben Hillier told Yahoo Finance longevity was increasing, people were having kids later and buying homes later<\/a>, and this was \u201cincreasing the pressure\u201d.<\/p>\n \u201cThese are the people they\u2019re just trying to juggle raising their own children, mortgage repayments and also helping their own parents as they enter care or to assist with ageing in general,\u201d he said.<\/p>\n Story Continues <\/p>\n \u201cWe expect that\u2019s likely to continue.\u201d<\/p>\n Australian Seniors research<\/a> found the average sandwich generation carer was contributing nearly $1,500 every month, or $18,000 a year, to support their ageing parents or in-laws.<\/p>\n Those with children, grandchildren or dependents were providing close to $1,300 on average for younger dependents.<\/p>\n Half (50 per cent) of those supporting both groups described the financial burden as “very” or “extremely challenging”.<\/p>\n Nearly half (48 per cent) of those surveyed thought providing financially for both parents or in-laws and kids, grandkids and dependents at least moderately impacted their ability to save for retirement.<\/p>\n Nearly two in five were moderately or very concerned about retiring on their desired timeline.<\/p>\n Hillier has urged Aussies who are worried about their retirement to seek out help.<\/p>\n \u201cSpeak to your super fund. Every super fund, or virtually every super fund, will have free advice available,\u201d he said.<\/p>\n \u201cThere\u2019s also government tools as well, and the MoneySmart.gov.au<\/a> website is a really good, valuable resource.\u201d<\/p>\n If you are in a couple, Hillier said it could be worth having the conversation and balancing things out when it comes to sharing responsibilities.<\/p>\n \u201cThere\u2019s other financial decisions that individuals and couples can make. Sometimes it might be as simple as when you’re in a couple, maybe in that sandwich generation of one partner still at home, a spouse can redivert their contributions to the other non-working spouse,\u201d he said.<\/p>\n \u201cContribution splitting<\/a>, we call it. That\u2019s a way of helping to eliminate that gender superannuation gap.\u201d<\/p>\n Velasco said she\u2019d found it helpful to talk to her friends in similar situations about their retirement plans.<\/p>\n Using online calculators to estimate how much she will need has also helped to ease some of her worries.<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n AMP Director, Retirement Ben Hillier said pressures facing those in the sandwich generation were expected to continue. (Source: Supplied) <\/p>\n