nottheaverageactuary

Actuarial news and views from Cape Town and beyond

The sandwich generation

2 Comments

The “sandwich generation” refers to adults who have to support their ageing parents and children during their retirement. Being caught in the sandwich generation is likely to jeopardize one’s own retirement, causing one to be dependent on one’s children during one’s retirement, and allowing the cycle to go on. In this article Peter Dempsey, deputy CEO of ASISA, provides retirement and savings advice for those who could potentially be caught in the sandwich generation.

http://www.moneyweb.co.za/mymoney/moneyweb-financial-planning/caught-in-the-middle/

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2 thoughts on “The sandwich generation

  1. This article does lay out some very serious issues which (much like the western world is struggling with the problem of underfunded pensions owing to overly-generous promises and improving longevity) is likely to affect South Africa and other major developing economies.
    Many developing countries (such as South Africa) are currently experiencing a situation in which the old live longer and medical care is becoming increasingly expensive – as so many of the other articles on here have shown. Additionally, parents are having to deal with the escalating costs of raising and education their children – as several recent articles have discussed:
    http://www.bdlive.co.za/opinion/columnists/2015/03/10/too-much-to-pay-for-the-paper-chase
    http://www.universityworldnews.com/article.php?story=2014102313130139

    This does however open the way for the insurance industry to aggressively roll out policies targeted at addressing these concerns, such as Long-term care policies and educational savings schemes.

  2. Sandwich generation is a serious problem in New York, it has resulted in emotional and financial stress i.e. people being forced to put their parents in nursing homes because they can’t afford to take care of them.

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