Baby boomer debt and retirement concerns are becoming a major issue for families around the country. Also known as the sandwich generation, many baby boomers are still paying off college tuition loans for their children while taking time off to care for aging parents.
While the common perception is baby boomers are financially stable and well-prepared for retirement, quite a few of them fall short of that goal. According to a Wells Fargo study, most people over 60 have savings of about $50,000, which is about a quarter million dollars short of their goal to retire.
The Washington Post reports a growing number of couples are getting divorced in their 50’s or 60’s, which means they are dividing assets they were depending on to retire. Plus, many baby boomers are living longer and will have ongoing bills for years to come.
Baby boomers who rely on working might fall short of their goals, too. Health issues and employer decisions could prevent some boomers from earning as much as they need to cover expenses.
As a sandwich generation, some have adult children living at home and are paying for health expenses for their aging parents. There are a few possible solutions that would benefit everyone.
Children living at home could help with the care of their grandparents by becoming part-time caregivers and contributing toward the cost of household expenses.
Boomers may also want to consider assisted living or retirement community options for their parents. The cost of lost income for those who are taking an extended leave could make it worthwhile. Plus, having someone else to take care of their parents could reduce stress.
Many boomers are consulting with financial advisers and attorneys to find solutions. This could help them juggle their unique financial circumstances and try to make the most of the resources they have.