The Sandwich Generation – What next?

The “Sandwich Generation” is now an oft used term, and increasingly, there are families who are now supporting not only their University-age children, but also their older, retired parents as well. Delays in starting a family, and Millennials trying to get on to the property ladder whilst still living at home, are contributing to more strain on the family finances than ever.

All being well, we are living longer and healthier lives. But as a middle aged-ish individual or couple, are you prepared for the next step in your family life, whilst maybe 10 + years off retiring yourself?

The age of the extended family living under one roof has long since passed, and in the UK many elderly relatives will be moved to a care home or retirement community, if the need and logistics arise. But for many families, there is the opportunity to extend their current home and make way for “Granny Annexe” living, “In-law suite”, “Grandparent-Cave”, however you like to call it, but the simple facts remain – if you are years away from retirement but have the responsibility of supporting two different generations of relatives, it is an area that your family will have to confront sooner rather than later. Almost 2 ½ million families in the UK are now considered part of the “Sandwich Generation”

Planning your finances is key when you are taking care of others: take advantage of tax-efficient ways to plan and save for the future. Pensions could be a way to do this, with contributions made are usually eligible for tax relief from the Government. ISA’s are also worth considering, with the 2017/18 tax year allowance now up to its highest level at £20,000, but the allowance is only available up until 5th April 2018.

There are many ways to help with inheritance tax liability, and forward planning is essential to potentially reduce a future bill. Tax allowances are also available, with the current annual £3000 exemption and normal gifts made from income.

Financial Education is also important for children, they can be taught from a young age to save, manage and plan for big purchases. It also encourages them to learn the value of money. There are many saving plans for young people available, including Junior ISAs.

Richmond House Wealth Management continues to assist families with long term financial planning, and we look forward to helping you.

Please contact us on 0333 241 3350

Wendy Devlin Dip CII, CeFA, CeMap (MP & ER)


This information is provided strictly for general consideration only. No action must be taken or refrained from based on its contents alone. Accordingly, no responsibility can be assumed for any loss occasioned in connection with the content hereof and any such action or inaction. Professional advice is necessary for every case. The value of investments may fall as well as rise and you may not get back the full amount invested.