Why sandwich-generation stresses are weighing on retirement plans

investmentnews.com:

Retirement reality is really starting to bite Gen X.

A recent survey from Prudential Financial revealed that America’s 65 million Generation Xers  — those Americans born between 1965 and 1980 — are facing a slew of financial challenges just as they enter their final working years. Most notably, more than one-third of Gen Xers have less than $10,000 in retirement savings and they are largely missing out on the Great Wealth Transfer from boomers to millennials.

“The problem is they really haven’t had the time to think about their future self and to get really confident about their plan going forward. And so they’re looking at retirement and are feeling like they may have to rely on Social Security for a large portion, if not all of their income,” said Dylan Tyson, president of Prudential Retirement Strategies.

As to the extent of their financial problems, the Prudential report said that almost half (47%) of all working Gen Xers expect to retire later than anticipated, while 40% plan to work part-time after retirement. A mere 12% say an inheritance will be a source of retirement income, even as boomers are expected to pass down more than $70 trillion.

And they can forget flying south for a sunny retirement on the beach. Approximately two-thirds (65%) of Gen X plan to stay in one city or town in retirement, and only 15% plan to split time between two locations, according to the Prudential study.

In terms of what financial advisors can do to help their Gen X clients, especially those trapped in the so-called “sandwich generation,” who are caring for their parents and children simultaneously, Tyson, a Gen Xer himself, says the key is to reduce the problem to its bare essentials and then have a plan.

“If you’re getting squeezed