Despite actively saving and preparing for retirement, members of the sandwich generation have in large numbers been unable to build robust emergency savings and retirement account balances, primarily due to the strain of financially supporting other family members, according to a new survey from The PNC Financial Services Group.
The sandwich generation — defined as those who are caught between financially supporting children and elderly family members — is acutely aware of its financial shortcomings, but instead of that knowledge spurring action, the stress of the responsibility is overwhelming to the point of creating an unpreparedness for the future. In fact, 32 percent of those surveyed report a retirement account balance of less than $25,000, and are facing additional near-term financial burdens.
“The reality is that the only way to improve your financial situation is to be honest with yourself and commit to making the necessary changes required to prepare for the future,” says Rich Ramassini, director of Strategy and Sales Performance for PNC Investments. “We can see that those in the sandwich generation are struggling to save for their own needs. When you add in the demands associated with family now and in the future, it paints a very grim picture for this demographic’s future unless they take immediate action.”