Double squeeze on those near retiring

EMPLOYEES nearing retirement face financial hardship in old age because they are sandwiched between conflicting financial demands.

They currently earn more money than any other age group. But they still bear responsibilities for helping their children to get by.

And growing life expectancy means many have elderly parents they must care for and they cannot rely on inheriting funds. The result is that millions of those in the “sandwich generation” aged between 45 and 54 are failing to save enough for their own old age, says a study for pension experts Brewin Dolphin.

There are only 180 monthly pay days left to retirement for a 50-yearold planning to retire at 65.

Yet on average employees that age have a pension fund shortfall of £370,000. Even for those whose children go to university, the burden of fees debt means their offspring will still rely on them after they graduate.

And there is no longer any certainty of an inheritance as the elderly live longer and have to pay greater care bills which could cost them their homes.

Despite being at peak earnings, 30 per cent of the “sandwich generation” are not saving anything and 20 per cent are putting away less than five per cent of their net income each month, the study found.

Some 64 per cent – six million people – class themselves as only “getting by” or “making ends meet” meaning they cannot save more.

Even one in three households with incomes between £70,000 and £100,000 say they are struggling.

And about half of all those quizzed expect to have to support children, grandchildren, and parents in the future. Liz Alley of Brewin Dolphin, said: “We recognise the pressures on household budgets. A greater savings culture needs to be encouraged. Better financial planning can make a big difference.”

boomers should work on until 70 or get involved in voluntary activity to enjoy better health, says England’s Chief Medical Officer. Professor Sally Davies said the benefits of new challenges “should not be underestimated”.