A recent report suggests that 45- to 64-year-olds have the lowest levels of life satisfaction of any age group except the over-90s. Those aged 45 to 49, meanwhile, have higher anxiety than any group above the age of 20.
How would you rate your anxiety and life satisfaction in midlife, as part of the so-called “sandwich generation”?
Financial worries can have a negative influence on mental health and your financial wellbeing, but professional advice could help.
Read on to find out how.
Understanding financial wellbeing could be the key to midlifers’ happiness
Recent figures from the Office for National Statistics (ONS) suggest that 45- to 64-year-olds have the lowest levels of life satisfaction of any age group, except the over-90s.
In midlife, you might be experiencing work-related stress, compounded by worries about your retirement.
You could also have dependents reliant on you.
You might be supporting grown children in higher education or helping them to get onto the property ladder. At the same time, you could have elderly parents who require your support to meet the costs of later-life care.
These pressures are likely to be particularly acute during the current cost of living crisis.
The 45- to 49-year-olds questioned by the ONS indicated anxiety levels higher than any group above the age of 20. Levels didn’t drop until age 64, around the time that most people will be in or entering retirement.
These findings seem to concur with those of a recent L&G survey that found “midlifers” are paying out around £10 billion a year to support their young or elderly dependents. But is that affordable?
The level of support you are providing may not be sustainable
With inflation at 9.1% in the 12 months to May 2022, and with the Bank of England predicting a peak at 11%, you might feel that the support you are providing isn’t sustainable. You wouldn’t be alone.
Of those surveyed by L&G, 10% agreed that they couldn’t maintain their current levels of support, and this was back in April, with inflation at 6%.
Six million Brits aged 40 to 60 (33%) provide financial support or unpaid care to a dependent – that’s 17% of midlifers.
On average, the cost of this support is £247 a month for adult children and £282 a month for an elderly parent or relative. That’s almost £530 a month if you have two sets of dependents, or £6,300 a year.
Unpaid care undertaken by this generation amounts to nearly 15 hours a week, equivalent to a part-time job. This is likely to come on top of full-time employment.
More than half (52%) have seen their financial pressures grow since the pandemic. The current cost of living crisis could represent another financial blow.
A solid financial plan can provide stability now and confidence in the future
At Boolers, we can help you to build a financial plan that helps you support your children, your parents, and yourself.
You can start to guarantee your children’s financial future the moment they are born. Setting up a Junior ISA (JISA) or paying into a pension on their behalf are both great ways to build a nest egg for their future.
A JISA might be used to part-fund higher education, introducing your child to the concept of investing. A retirement fund, meanwhile, might be tied up for decades to come but it will give your child a great foundation to build their dream retirement.
If you find that you need to open the Bank of Mum and Dad later in life, doing so without the safety net of these products will likely be much harder. We can help to ensure you only part with what you can afford. This should mean that the cycle of dependent elderly relatives doesn’t perpetuate.
Talking openly about mortality and estate planning is crucial and makes a real difference later in life when time becomes pressing or conversations become even harder.
You’ll need to understand what provisions, if any, have been made for elderly relatives’ later-life care. It’s never too late to put something in place that could save you money later on.
The long-term financial plan we put in place for you will involve a holistic look at your circumstances. It will consider all income streams and potential future outgoings, including those to support dependents.
Your plan will make the best use of tax efficiencies across all products you hold and will be reviewed regularly to ensure it is still on track.
Based on your financial goals, your dream retirement, and a full understanding of your risk profile, your plan will help to give you stability in the present. You’ll also have confidence and a sense of control over your future, whatever happens in the wider world.
Get in touch
If you are worried about how you will continue to support your dependents during the cost of living crisis, please contact us today.
The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.
“At Boolers, you know that things will be dealt with properly and professionally. A real safe pair of hands!”
“I have always found the quality of advice, technical knowledge and level of service is second to none. ”
“Thank you to all of you for such a wonderfully smooth transaction! Hope we can do it again some time.”
“Boolers provided excellent advice when we needed it most.”
“Boolers have provided myself, family and business with pension and investment advice for over 30 years and continue to provide a high quality professional service to us all on an ongoing basis.”
“Chris Ball has been our Financial Adviser for many years and, from the start, we have been impressed with his strategic sense, his deep knowledge and his skills in helping us build our own successful retirement. He understands our aims and how to achieve them and has taken great care of us throughout. ”