| Copyright: | Copyright Business Wire 2010 |
| Source: | Business Wire, Inc. |
| Wordcount: | 1086 |
Majority have negative view of parents’ and their own financial situations
According to the survey, 78 percent of respondents fear that they will not be able to retire “comfortably” – a statistic that speaks to just how significant the financial burden is. In an effort to reduce this strain, 52 percent of Sandwich Generation-ers indicate that they will need to work part time during retirement.
Further supporting the evidence that the Sandwich Generation is feeling unprecedented financial pressure can be seen in the data which overwhelmingly highlights the fact that those surveyed are continuing to feel the effects of the most recent economic downturn. To this end, 61 percent of respondents view their parents’ current financial situation as “negative,” which is interestingly consistent with the finding that 64 percent view their own current financial situation as negative.
“Our country is continuing to reel after the economic events of the last two years,” said
When baby boomers were asked to indicate how they are planning to fund their retirement, 60 percent indicated that they would rely on their 401(k) or IRA account(s) to sustain them through retirement and 37 percent noted that will turn to their home equity line of credit.
“When looking at the responses from this study, it became clear that baby boomers are still only relying upon their often underfunded retirement accounts and home equity lines of credit to support their retirement,” said Lewis. “The truth of the matter is, when you look at the cost of maintaining your lifestyle in retirement, coupled with the increased price of supporting an aging parent, it becomes daunting and at times unrealistic to think that it can be met simply with what you have saved in your nest egg. The good news is there are financial instruments available, reverse mortgages being one of them, that can alleviate some of these stresses.”
While the anecdotal notion that Americans continue to face financial hardship is not new, data from this survey more empirically spotlights the fact that 51 percent of Sandwich Generation respondents have, at some time over the last year, failed to make at a rent, mortgage, credit card, auto loan and/or a college loan payment due to having a lack necessary funds.
Interestingly, nearly one in four (23 percent) of those surveyed have restructured their financial savings plan in some way over the last year. This statistic is further validated, given that 23 percent of respondents indicated that they have lost a job over the last 12 months while 24 percent were forced to take a decrease in pay and/or benefits. How are they compensating? 73 percent indicated that they are trying to save money by spending less on entertainment and recreation activities.
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