press release

No picnic for Sandwich Generation as finances are spread too thinly

UK Sandwich Generation has financial responsibilities which pulls them in all directions, says new report
More than half (52%) are worried about the consequences of a serious illness affecting themselves or partner in next year
More than half (54%) want to save but can’t afford to do so 
Average expected retirement income is less than £260 a month (1)

New research from LV= warns the UK’s Sandwich Generation is feeling strained when it comes to their financial responsibilities. It has found this group of around 2.4million (2) people – typically between 40 and 60 years old – lacks financial confidence and preparedness and, as this age group grows older, the issue is set to intensify.  
Shouldering significant responsibility – caring for children as well as an older relative or friend – means this group is more likely to worry about the impact of a financial shock on their dependents. More than half (52%)(3) are worried about the consequences of a serious illness affecting themselves or their partner in the next 12 months (versus 35% national average). They are also nearly two times more likely to worry about the prospect of themselves or their partner dying and leaving the family without an income (30% compared to 17% national average)(3). 

The research, which is part of LV=’s upcoming ‘Income Roulette’ report, also reveals the Sandwich Generation are unprepared for the longer-term future. Nearly two in five (37%) have less than £125 disposable income each month(3), with nearly half (46%)(3) citing their children as a constant source of unexpected expenses. More than half (54%)3 say they want to save but can’t afford to do so – which also means they struggle to top up their pension pots. On average, this group has around £60,000 to retire on, while expecting their funds to last around 20 years, which would provide a monthly income of less than £260(1).

Justin Harper, Head of Marketing at LV=, said: “It is clear this group feel they are being pulled in many directions, with pressures to care for older relatives and ongoing responsibilities for their children. The Sandwich Generation have huge financial obligations and with the rising cost of living, are worrying more about what could be around the corner. Spreading their finances too thinly and dwelling on their worries, means the impact of having little or no plans in place, could expose them to a real income shock.
“Getting a better understanding of the options available is essential to being prepared for a more secure financial future. This can provide peace of mind against income shocks, such as not being able to work due to illness and can help them ensure they are putting away what they need for their retirement.” 

Nearly three in five (57%)(3) of people within the Sandwich Generation fall short of the Money Helper recommended amount of savings to be financially resilient and more than a third (34%)(3) don’t feel they could handle a personal financial crisis. 

To find out more about protecting yourself financially and planning for your retirement, speak to a financial adviser or go to . 


Notes to editors

For more information or case studies please contact: 

Chris Fay, [email protected] 0207 010 0839 
Sian Evans [email protected] 0207 010 0831
Vanessa Ellis, [email protected] 0207 010 0876

Notes to editors:

  1. Based on averages from YouGov from consumer survey. This is the average of ‘Total amount in pensions’ (question highlighted in cell B690 of the attached Excel doc) divided by ‘Time retirement funds will last’ (question highlighted in cell B800). So, £60,933 divided by 19.82 years. 
  2. Estimate from CarersUK
  3. Methodology for consumer survey: YouGov, on behalf of LV=, conducted online interviews with 8,529 UK adults between 20th and 26th June 2018. Data has been weighted to reflect a nationally representative audience.

Methodology for recognised benchmark of financial resilience: Money Helper guidelines for financial resilience state that ‘people should hold an emergency fund of three months’ income’. LV= identified the ‘least financially resilient’ groups based on the combined factors of how respondents fared against the Money Helper definition and how confident respondents reported to feel about being able to manage a financial crisis.

About LV=:

LV= serves over 5.8 million customers with a range of financial products. We are a leading financial mutual and currently the UK’s joint number one brand for Insurance and Investments, according to the 2016 YouGov Brand Index Buzz Rankings. We offer our services direct to consumers, as well as through IFAs and brokers.