« A downside of lower oil prices | Main | Occupation vs industry »
November 02, 2006
The senior sandwich
It used to be that parents had children, saved money for their kids’ education, and then once the kids were through with college the parents could begin saving for their own retirement. But the formula has changed for today's parents, says an N.C. State University economist, because of what's come to be called the senior sandwich.
"What is it is that many parents are finding a squeeze from two sides of the age spectrum," says Dr. Mike Walden, a professor in the Department of Agricultural and Resource Economics.
"On the one hand, what they are finding is their parents are living longer, and they are actually having to take money they are earning to help maintain their parents -- perhaps in some assisted care facility or maybe even taking their parents into their home," he adds.
"On the other side, many parents are finding that their kids, who they perhaps thought would be gone at maybe age 24, are hanging around more," Walden says. "They are living at home. They are not finding a job -- or finding a good job -- so they are still living at home. Therefore, the parents are having to allocate money also to their children.
"So the senior sandwich reflects the fact that parents are being squeezed from both the older side, their parents, and the younger side, their children," he concludes. "And that’s having an impact on a rising percentage of families today."
Posted by deeshore at November 2, 2006 08:10 AM