Individuals aged between 40 and 60 – dubbed “midlifers” – are facing time and financial pressures as they try to support their families. Many are feeling the strain and don’t have the resources to focus on their own goals, and financial planning could help.
According to a survey from Legal & General, 6 million midlifers are finding themselves caught in the middle of providing financial support to adult children and providing unpaid care to ageing relatives. On top of this, it’s a crucial period for securing their own financial future and retirement.
The research found 17% of midlifers provide financial support to another adult, totalling £10 billion a year.
- Those supporting grown-up children provide, on average, £247 a month.
- Midlifers financially helping elderly parents or other relatives spend, on average, £282 a month.
The findings suggest that at age 45, you’re likely to have the greatest level of financial responsibility, while age 58 is when you’re most likely to start taking on some care responsibilities.
It’s natural to want to lend support to your loved ones, but it can harm your own lifestyle and long-term goals. While retirement can seem a long way off when you turn 40, it’s an important milestone to start thinking about. The steps you take now could affect the lifestyle you enjoy in your later years.
10% of midlifers feel the level of support they provide is unsustainable
The research worryingly found that 10% of midlifers feel that the support they provide is already unsustainable. If you’re supporting loved ones, a financial plan can help make it part of your budget and balance the support with other priorities.
If you’re neglecting your pension or other steps that could improve your long-term financial wellbeing, financial planning can help highlight potential challenges in the future and show you how to reduce risks. It means you’re in a better position to meet the demands you’re facing now and still secure your future.
It can also help you make decisions about the financial support you’re offering.
For instance, if you’re helping adult children with rental costs, would providing a lump sum to act as a house deposit make more sense? It could reduce their outgoings overall and provide long-term stability. It’s an option you may have dismissed or not even considered, but we can help you review your finances to see if it’s right for you.
If you’re struggling to provide care for a loved one, paying for some professional support can also make sense. This doesn’t have to mean a care home but could be someone that checks in with them every day. It can relieve some of the pressure you may be feeling while still ensuring your loved one is getting the additional support they need.
A financial plan can help you confidently support the people who are important to you.
19% of midlifers spend no time on their own financial wellbeing
As well as having a direct effect on expenses and how your money is used, supporting others can reduce the amount of time you have to organise your own life.
25% of people aged between 40 and 60 said they get less than an hour to themselves in the average day. Almost a fifth (19%) said they have no time to spend on their own financial wellbeing.
Financial planning doesn’t just provide you with a plan to reach your long-term goals. It can help you make the most of your time and reduce how much admin you need to do to stay on track.
As your financial planner, we can provide you with confidence in your financial future and set regular reviews, so you don’t have to worry about how your pension is performing or whether you have adequate financial protection day-to-day. This step means you can focus on what’s important now while knowing that your long-term financial wellbeing is secure.
Financial planning can help you get the most out of your money and time. Please contact us to arrange a meeting.
Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.