News

UK: A growing sandwich generation survives not thrives

11 December, 2008

• Greater financial burden for an increasing number of people in middle age

Norwich Union, part of Aviva, predicts that an increasing number of people will have to provide care for parents and children as the UK's demographic continues to change. Increasing life expectancy and falling birth rates over recent decades means there are more older people supported in retirement by fewer people of working age. Additionally, the trend of having children later in life, alongside historically high house prices and student debt, mean that children are also remaining financially dependent on their parents for longer than ever before.

Research release today by Norwich Union provides more insight into the challenges of this group, nick-named the "Sandwich Generation".

Anyone can enter the Sandwich Generation - The research confirmed that the dual care role could happen to anyone. Members of the Sandwich Generation surveyed were made up from all walks of life and although the care burden fell mainly to women, four in 10 surveyed were men. In terms of age, those surveyed were evenly split amongst the 35+ population, with similar proportions aged 35-44, 45-54 and 55+.

The role played by the Sandwich Generation - Almost all surveyed were providing their time to support older relatives but half were also providing financial support. Seven in 10 were spending more than 10 hours a week and one in five spending more than 30 hours a week fulfilling a variety of duties ranging from housework, cooking and shopping to more intensive support such as bathing and feeding.

Financial support ranged from contributions to household bills to paying for "big-ticket" items such as rent and private care home fees.

The Sandwich Generation are unprepared - Despite most of those surveyed claiming to be good at making plans for the future, two-thirds had not anticipated being in a dual care role and four in five had not made any plans for the care of their older relatives. This lack of planning continued after people had entered the Sandwich Generation with many adopting a "head in the sand" attitude. More than half had made no financial plans for their older relative and only one third were content with the level of financial planning they had made.

A lack of financial planning puts strain on the entire family - The majority were hit financially with many saving less, being more careful about spending, and having less money for luxuries. However, one in four also struggled to pay for basics such as rent or food or had to resort to using their pension or retirement savings. One quarter even reduced their hours at work and one in 10 gave up work entirely, impacting the total household income and putting further strain on the family finances.

Putting on a brave face - Despite these pressures, many people in the Sandwich Generation did not see themselves as "carers" and were reluctant to admit that they needed help. When asked how well they were coping with the dual care role, almost six in 10 said they were coping moderately well, but far fewer were coping very well.

Breaking the cycle - Brian Bussell, director of pensions at Norwich Union says, "The aging population means more and more people will find themselves in the Sandwich Generation. Most worrying is that when people use their savings or cut back on pension contributions to fund care for their parents, they are storing up problems for the future and increasing the chance that they will require the same service from their own children. If we are to break this cycle we need to plan for this eventuality.

"When over 100 families are losing their homes each day to repossession, planning for the potential of having to provide care for older loved ones seems a request too far, but this clearly demonstrates the need for the UK as a whole to take out a new years' resolution to review their finances, so that what money they do have is either spent wisely, or saved wisely to secure their own and their families future."

Holly Smart 07800 699218
Louise Soulsby 01904 452617
Sarah Poulter 01904 452828

Notes to Editors

About Norwich Union
Norwich Union is one of the UK's biggest life insurers. It is a leading provider of life, pensions and investment products and one of the largest financial adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK. Norwich Union has strategic alliances with building societies and other leading UK brand names including CIS and The Royal Bank of Scotland Group. Norwich Union's news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media.

In the summer of 2009 Norwich Union will change its name to Aviva. Aviva is the world's fifth largest insurance group and operates in 27 countries. Aviva is to become the customer brand worldwide, thus enabling the company to compete even more effectively on a global scale for the benefit of customers, staff, business partners and shareholders.