(April 2021) – Laura Rogers, TwoWest
Individuals taking care of aging parents AND raising kids of their own are members of the Sandwich Generation. Studies show that 47 percent of people in their 40s and 50s are currently in this situation (1). This is why it's important to help them be prepared for the future.
The need for financial help has never been greater. In fact, many employers have recently added financial wellness programs to their benefits, offering – not just for the "Sandwich Generation" – but for all employees, regardless of lifestage. In fact, 82 percent of employers agree that offering financial wellness is "the right thing to do" (2).
There are many financial wellness options flooding the marketplace, and choosing the right program to offer can be overwhelming. Key attributes of any wellness offering should provide employees the tools, support and systems to:
- Create a Plan. Review financial goals regularly and make any changes to the financial plan to help employees manage unexpected events, such as a career change or a health emergency.
- Save for Life Events. If your employees have not started, they will likely need to start saving for major life events – home purchase, college tuition or long-term care. A robust program can provide tools and accountability for savings milestones.
- Control Debt. For many Americans, this may be a tall order, but installment debts (car payments, credit cards, personal loans, college loans, etc.) should account for no more than 20 percent of take-home pay.
- Long-Term Focus. Putting away as much as possible into a retirement plan, where savings (which may be matched by the employer) grow tax-deferred until retirement.
- Talk to the Family about the provisions for the future including realistic college options, long-term care insurance, adequate retirement income and savings goals. Make the location of key documents known and enlist a professional for advice.
Professional support for all employees, regardless of income, financial aptitude or complexity of their situation is critical when planning financial goals. When faced with financial decisions, it is important to feel confident employees have a trained professional to rely on.
If you would like to know more about offering financial wellness, contact Ryan Rink (Rink@TwoWestAdvisors).
- Passy, C. (2015, Oct. 10). Six Lessons for the Sandwich Generation. Retrieved March 14, 2017, from http://www.marketwatch.com/story/6-lessons-for-the-sandwich-generation-2015-09-10
- 2 PWC's 2017 Employee Financial Wellness Survey