The document discusses the challenges faced by the "Sandwich Generation" - those who provide care and financial support both for their children and aging parents. It notes that 44% of 45-55 year olds fall into this group and on average they provide $10,000 per year and 1,350 hours of support to family members. The document recommends that adult children have conversations with their parents about financial and healthcare planning to prepare for future needs, including discussing long-term care insurance options.

1. The Sandwich GenerationTaking Care of Aging Parents
Presented by
Christine Schmitz, CPA, CFP®, LTCP

2. The Sandwich Generation
We don’t choose to be a member of the
sandwich generation…
It chooses us!

3. What is the “Sandwich”
Generation?
The Sandwich generation refers to those
who support children (at any age) and at the
same time support or care for parents.
Because most of us are responsible adults, we don’t run
away from caring for our parents or children when they are
in need.

4. Support Means Different Things to
Different People
Children or parents residing with you
Non-residential financial support
Supporting children who are in
college by paying tuition bills
Assisting children with purchasing a
home or renting an apartment

5. Or Support Could Mean…
Assisting with the care of grandchildren so
your children can work
Assisting aging parents with
personal care or errands
Assisting aging parents
financially with living
expenses

6. What’s All the Fuss About?
Demographic trends have led to increased
attention to the Generation in recent years:
• Increased life expectancies- more middle
aged people have living parents
• Birth rates are lower- parents have fewer
children to share the burden
• Adult children are more likely to live further
away from parents, complicating the
situation

7. By the Numbers
An AARP report found that 44% of 45-55
year olds had both at least one living parent
and one child under the age of 21.

8. By the Numbers
The Bureau of Labor Statistics found that
1/3 of women could be defined as belonging
to the Sandwich Generation.
Statistics from the Monthly Labor Review 9/2006

9. By the Numbers
• Financial assistance given on average:
– $10,000 a year
• Time spent on average:
– 1,350 hours per year
• They are responsible for $18 billion dollars
in intra-family transfers.
• They give 2.4 billion hours of time.
Statistics from the Monthly Labor Review 9/2006

10. So How Can We Prepare for the
Inevitable?
It may be a tough conversation, but talk to
your parents about their financial
situation. Financial problems can go
undetected for years.
 Be tuned in to their saving/spending habits.
 Familiarize yourself with their insurance
coverage. Have any of their policies lapsed?
 Help your parents do an insurance policy checkup.

11. What steps have they taken to
prepare for possible medical care
needs?
Do they have long-term care insurance?
– What are their options at this stage?
– Traditional long term care policies versus
“hybrid” life/long term care policies

12. What steps have they taken to
prepare for possible medical care
needs?
Are your parents resistant to long-term
care insurance?
» It may be in your best interest to buy LTC
insurance for them.

13. Taking Action
• Long term care insurance premiums are
rising
• Some insurance companies have left the
LTC market
• Government support is uncertain

14. Questions?
Christine Schmitz, CPA, CFP®, LTCP
Senior Financial Advisor
Glass Jacobson
410.356.1000
Christine.schmitz@glassjacobsonIA.com
www.glassjacobson.com