Rise of the ‘club sandwich’ parents – supporting three other generations

Much has been said about Britain’s “sandwich generation” – the middle-aged parents who are financially squeezed by having to support both elderly parents and young children.

However, now there is now a growing number of “club sandwich” parents – those who are having to financially help out three other generations in their families. This could include mid-lifers supporting two older generations and their children, or those who have recently retired looking after their parents, children and grandchildren.

Analysis suggests that retirement savings are set to come under even more pressure in the next 10 years, as more than 1m families are predicted to have at least two retired generations.

The number of families with multiple retired generations is increasing more quickly than expected. In 2018, it was predicted that by this year there would be 704,000 club sandwich families, but there are already 813,000 in Britain.

By 2029, 963,000 families will contain more than one retired generation, an increase of 18pc from this year, analysis from wealth manager St James’s Place found. In a decade this number is predicted to jump to 1,077,000, an increase of 32pc from 2024 – the equivalent of 264,000 families. Increased average life expectancy plays a large part in this – up for women from 76.8 to 82.6 between 1980 and 2022, and for men from 70.8 to 78.6. At the same time, the age that people first become grandparents has also increased.

In Italy, the average age of the grandmother of a 35- year- old woman is expected to increase from 77.9 years in 1950 to 87.7 years in 2095, according to a research group at the Max Planck Institute for Demographic Research in Rostock, Germany.

This means that in many families, grandparents have semi- retired or given up work before they earn the moniker, meaning they are on-hand for more childcare responsibilities.

Ellen Carbonell, a professor of social work at Rush University in America, told the Huffington Post that the role of grandparents had become more diverse, and that many are no longer simply “babysitting”, but are instead providing childcare on a regular basis.

However, if they are also trying to dedicate time and money to elderly relatives, this juggle can prove tricky – particularly as family networks are getting smaller as a whole.

The number of living grandparents and great- grandparents are increasing, the study found, but the numbers of cousins, nieces, nephews and grandchildren are decreasing.

While a 65-year-old woman in 1950 could expect to have 41 living relatives, a woman of the same age in 2095 is predicted to have just 25. This puts yet more pressure on those who are still earning, as well as on the pension pots of those who have already retired.

Claire Trott, retirement expert at St James’s Place, said: “Future retirees are increasingly expecting to financially support others once retired, and retirement income is having to stretch in multiple directions.”

The Pensions and Lifetime Savings Association, the industry body, has said that a single retiree needs £43,100 a year for a “comfortable” retirement, compared to an income of £14,400 for a “minimum” retirement lifestyle.