London professionals who are part of the ‘Sandwich Generation’ are facing a cost of living crisis as they provide care for elderly loved ones while raising children at the same time. According to a recent study, around 2 percent of the UK adult population provides sandwich care, and they’re generally employed in professional or managerial occupations. Londoners in mid-to-senior level roles face additional pressures due to higher cost of living, delayed parenthood, and longer life expectancies, which add to their overall strain.
Juggling work and family commitments can take a significant toll on a sandwich carer’s finances and mental health. What’s more, since dual caregiving can be time consuming, many executives are forced to reduce their working hours, step down from demanding roles, or seek remote opportunities, which result in losing as much as £6,000 in earnings per year. This is why every sandwich caregiver must plan proactively to protect their career and finances while meeting the needs of both their children and ageing parents. To survive the squeeze, here are some smart financial strategies for London’s dual-care professionals.
Outsource caregiving duties
Most people will say that dual caregivers ought to consider placing their elderly parents in a care home to have more time for themselves and their young children. However, the sandwich generation often hesitate to put their ageing loved ones in a care institution or nursing facility since long-term care can be quite expensive. According to Age UK, it costs around £949 a week for a place in a care home, while nursing home fees amount to £1,267 per week. Also, sandwich caregivers feel a profound sense of worry that placing their parents in a facility signals abandonment or cutting off their bond. There are also quality of care concerns as stories of neglect and understaffing in institutionalised settings make caregivers fear that their loved ones will lose their dignity and sense of autonomy.
If care home placement is not an option, consider hiring a live-in carer for dedicated support and companionship for your elderly parent. Depending on your care needs and location, hiring a live-in carer can be more cost effective than a care home, and you can be assured that your parents will get 24/7 assistance with daily activities like meal preparation and bathing, medication management, and light household chores. This could be the ideal solution if your parent needs support for low to moderate needs, or if you’re looking after your ageing mother and father since paying a single caregiver to look after two people is much cheaper than paying for two separate placements at a care home.
Maximise all available resources
Avoid draining your savings dry by reviewing your available resources. First, map out all your sources of income and expenses, then separate personal funds from care recipient funds to prevent mix-ups. You may also want to check if your parents can cover part of their care costs. Assess their pensions, savings, and insurance policies to determine how much of their care expenses can be funded with these.
Also, consider getting community or government aid. Check with your local council to see if you’re eligible to receive funds which will allow you to cover your parent’s medical expenses or live-in carer costs. You may also seek assistance from the National Health Service if your loved one has severe or complex, long-term health needs. If eligible, the NHS may fully cover the cost of your parent’s live-in care at home. For additional funds, see if you qualify for government benefits like carer’s allowance. This is usually granted to a family member that provides 35 hours of care per week. Check your policy coverage too so you can utilise available health insurance for your parents and education insurance for your children.
Protect your budget
Just because you’re a sandwich caregiver doesn’t mean that you have to neglect your future financial needs. There’s no telling what could happen in the coming years, so don’t pause your retirement contributions unless it’s the last resort and it’s absolutely vital for your loved one’s health and survival. Try to add to your savings, even if it’s just a small amount every month, then lock in long-term funds with time deposits.
If you have older children, encourage them to be financially independent by taking on part-time or remote jobs or applying for scholarships. Finally, normalise the money conversation and be open when talking to your parents and children about your finances. Set healthy boundaries, and be clear about the things that you can and cannot afford.
Taking on dual-care responsibilities can put a strain on your resources, but there are ways to get around a rough financial patch. Outsource caregiving duties so you can focus on work, maximise available resources, and protect your personal finances to prevent burnout and safeguard your future retirement.
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