A Sandwich Generation

A lot has changed in our family cultures of the past 100 years.  In 1900, the life expectancy of an average person was around 50 years old, while today it is closer 80 years old.  In 1900, it was very common to have 3, even 4 generations living in a home.  Today, while it is more common for the younger generation to stay with parents until their late 20’s, the expectation is that they will leave, and over the past 50 years it has been pretty rare for people in their 50’s to have their parents living with them.  This is changing for many Canadians.


Canadian Baby Boomers are facing something that many have never really prepared for: the caring of their aging parents.  As Baby Boomers hit their 50’s and 60's and their children start leaving home, they are finding that some of their parents are in their 70’s or 80’s and are having difficulty living on their own.  Baby Boomers are starting to take in their parents, sometimes for health or financial reasons.  The health reasons tend to be obvious reasons for care, whether mental or physical, but the financial reasons are not always discussed.
Parents who are in their 80’s right now, were raised by parents who generally only lived to be 68 years old.  Those parents often worked full time almost right up to their death.  For those who saved for retirement, they were thinking it only needed to support them for a few years, not 20 years.  Between this level of retirement savings, inflation of necessary items (heat, electricity, vehicles) and a much longer life span, there are unfortunately many seniors who are having great difficulty in affording a place to live on their own.  The cost of assisted living facilities has also risen dramatically over the past few decades, making it almost impossible for many people to live in these facilities, even though the need exists.

As a result, Baby Boomers are becoming what is called the Sandwich Generation.  Taking care of their own kids, and also taking on the care of aging parents.  While this is a surprise for some, and can add to financial costs, for many this is a positive experience.  With the Baby Boomers being the first generation as a whole to leave the family home and community, they now have the opportunity to get to know their parents and family history in ways they never could before.  It also gives the grandchildren an opportunity to know their grandparents well, something that a whole generation may have missed out on because of distances.

It also takes financial planning to care for your parents.  There are costs associated with parental care.  It may mean improvements to the house to help with mobility, or a change in vehicle for the same reason.  It also means that you may want to review your will, insurance and other long-term planning goals to take into account the caring of your parents.  Who will care for them if you pass away first?  No-one enjoys asking these questions, but most people hope to care for their loved ones somehow, even if they are no longer able to do so themselves.

Planning for how you can take care of your parents before the need arises can help ease the stress of such a dramatic life change.  While there are many costs and added responsibilities, there can also be many opportunities that come with such a relationship.
Jerry