Empowered and Sandwiched: Navigating Wealth and Caregiving

As women increasingly find themselves in the “sandwich generation”—simultaneously supporting aging parents and their own children—they’re also poised to inherit a significant portion of global wealth. According to Boston Consulting Group, women now control 32% of the world’s wealth, a figure expected to rise to $97 trillion by the end of this year.

This dual role presents unique financial challenges and opportunities. Many women are approaching retirement while managing caregiving responsibilities, making it essential to engage in proactive financial planning. Lisa Roberts of Wilmington Trust emphasizes the importance of early and open conversations about family finances, including understanding parents’ financial situations and planning for long-term care needs.

Healthcare costs, particularly for long-term care, can significantly impact family wealth. Roberts advises that families develop comprehensive plans to address these expenses, ensuring that both current and future needs are met. Additionally, investing in education savings plans, like 529 plans in the U.S., can help manage the rising costs of higher education for children.

Despite the growing financial influence of women, the wealth management industry often falls short in addressing their specific needs. A 2023 Ellevest survey found that 86% of asset managers in the U.S. admit their default customer is a man, and only 7% of UK wealth managers have dedicated strategies to serve female clients.

Women tend to prioritize holistic financial goals, focusing on family and community well-being. Shannon Saccocia of NB Private Wealth notes that women often seek financial advice that aligns with their broader life objectives, rather than solely focusing on investment returns.

Key Takeaways for Women in the Sandwich Generation:

• Initiate Family Financial Discussions Early: Engage in conversations with parents and children about financial goals and expectations.
• Plan for Long-Term Care: Assess potential healthcare needs and associated costs to protect family wealth.
• Seek Goal-Oriented Financial Advice: Work with advisors who understand and prioritize your holistic financial objectives.
• Advocate for Inclusive Financial Services: Encourage the financial industry to develop strategies that address women’s unique financial journeys.

By taking proactive steps and seeking tailored financial advice, women can effectively manage the complexities of the sandwich generation, ensuring financial stability for themselves and their families.

Sources: “Wealth advisers focus on women of the ‘sandwich generation’” – Professional Wealth Management

Women now control 32% of the world’s wealth

– Boston Consulting Group