27 Sep 2024
SOURCE: CPF Board
Juggling the responsibilities of caring for both your children and aging parents can be challenging.
If you find yourself in this situation, you're part of the "sandwich generation" that has to meet the demands of raising their own families while also tending to the needs of elderly parents.
Being in the sandwich generation comes with its share of considerations and responsibilities. While the road ahead may not be easy, you can take active steps to manage these challenges for you and your loved ones.
Growing needs of the sandwich generation
Singapore is experiencing a gradual shift in family structures. In 2023, about one in five Singaporeans (19.1%) were aged 65 and above. This is up from around one in ten (11.7%) just a decade earlier in 2013. Looking ahead, this proportion is expected to grow to nearly one in four (24.1%) by 2030.
If you're part of the sandwich generation, know that you're not alone. There are plenty who are walking this path alongside you as well.
Financial management for the sandwich generation
1. Create a budget that works for the household
It's easy to feel conflicted when trying to balance the financial needs of so many dependents. You might find yourself wondering, "How can I have enough to support all my loved ones while also having enough for myself?"
Creating a budget is a good first step that helps you gain a clearer picture of your finances. Here's one way to get started:
- List all expenses: include costs for your parents, children, and household.
- Prioritise needs: focus on addressing the most important things first.
- Have open conversations: consider discussing your financial situation with your loved ones. This can help them understand your spending limitations.
Budgeting can be challenging when finances are tight, but don't let initial hurdles discourage you! You can also involve your family members in the process to find practical solutions. At the end of the day, the key objective is to create a sustainable plan that can accommodate the needs of everyone.
Read more about how two parents approach financial planning as a family.
2. Maintain clear communication with everyone in the family
Money can be a difficult thing to talk about. Clear communication helps to bridge this gap and can foster greater understanding with your loved ones.
When communicating with your children, it’s useful to teach them the value of money and the difference between wants and needs. These lessons will also foster healthy financial habits as they grow.
When communicating with your parents, it’s important to listen with empathy and give everyone a chance to express their thoughts and feelings. Approach such conversations with a calm attitude and let them know that you are thinking with their best interests in mind.
3. Maximise parent and child tax reliefs
Tax reliefs help in reducing your final tax bill. Through the parent/handicapped parent relief, you can claim up to $9,000 for each dependent living with you or $5,500 for each dependent not living with you.
A dependent counts as your parent, parents-in-law, grandparents, or grandparents-in-law who is at least 55 years old and has an annual income not exceeding $4,000.
Parents can also tap on a variety of tax reliefs and rebates, with the Parenthood Tax Rebate offering up to $20,000 in tax rebates per child.
Check out our article on tax reliefs that you might be eligible for.
Healthcare planning tips for the sandwich generation
1. Stay protected from hefty healthcare bills with insurance coverage
Healthcare costs can add up easily and it’s important to stay protected with insurance to protect you and your loved ones from expensive hospital bills.
MediShield Life is a basic health insurance plan that provides lifelong protection against large hospital bills and selected costly outpatient treatments for all Singapore citizens and permanent residents. Regardless of age or health conditions, you will be covered by MediShield Life
Learn more about these calculators and resources for healthcare planning.
2. Make exercise a shared activity
Exercise is the best activity that one can do to stay healthy. It also makes for quality bonding time for all three generations and is a powerful tool in helping you to keep fit and free from illness.
By encouraging healthy habits such as eating healthily and packing in at least 150 minutes of physical activity a week for all family members, you can potentially reduce healthcare costs in the long run.
Be sure to also attend routine health screenings for early detection and treatment. It can go a long way in keeping you and your family free from any underlying diseases and lowering overall medical costs.
Housing considerations for the sandwich generation
1. Bring everyone under one roof with multi-generational living
Inviting your ageing parents to live together with your family can be beneficial by making it easier for caregiving and lowering the cost of running two households.
Your children can also pick up wisdom and life lessons from their grandparents, while your parents can stay young at heart by engaging with their grandchildren.
However, this arrangement is a huge undertaking and requires everyone to respect each other’s space. You might even need to make some home modifications to ensure that every member of the family stays comfortable.
If you’re looking to sell your home, read more about what happens to your sales proceeds after selling your home.
2. Moving closer to your parents
If living together isn't the right fit, consider moving closer to your parents. This approach offers a middle ground that can still make caregiving easier.
Being nearby lets you check in on your parents often and spend quality time together. It also preserves some privacy for everyone while still being close enough to support each other.
When deciding on housing arrangements, it’s important to find a balance that works for everyone. Having a frank and open conversation with your family members about their preferences and concerns is important in ensuring that everyone’s needs are well accounted for.
Bonus tip: Self-care - an overlooked aspect of caregiving
Caring for both your children and aging parents might make you feel stretched to your limits, but it's easy to forget that you need care as a caregiver too.
Self-care doesn't have to be a luxurious or opulent affair. It can be as simple as taking a break to do things you enjoy or spending a quiet moment alone. Even small acts of self-care can make a big difference to your well-being.
What you need to know if you are part of the sandwich generation
Being in the sandwich generation is a unique position, and while challenging, it's also a privileged one as it allows you to spend quality time with your loved ones across generations.
With careful planning, open communication, and a focus on self-care, you can find a sustainable balance that works for everyone in your family. Stay strong, stay positive, and remember that support is available when you need it!
The information provided in this article is accurate as of the date of publication.
