ET Wealth | How to plan retirement, kids, elder care

SynopsisLuckily, the squeeze phase doesn’t last forever. Kids grow up, loans get paid off and people enter peak earning years as they move towards their 50s. And given the increase in surplus during this phase, many people can accelerate retirement contributions meaningfully.Listen to this article in summarized formatYou are neither too young, nor too old.…

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ET Wealth | How to plan retirement, kids, elder care

Synopsis

Luckily, the squeeze phase doesn’t last forever. Kids grow up, loans get paid off and residents enter peak earning years as they move towards their 50s. And given the increase in surplus during this phase, numerous people can accelerate retirement contributions meaningfully.

Listen to this article in summarized format

You are neither too young, nor too old. Your children’s higher education is just a few years away. Your old parents increasingly need support, not just medical and emotional but sometimes financial. Plus, you are either repaying a loan or two, and trying to save something for your own retirement which, in this era, may happen much before you hit 60.

As overwhelming as this sounds, it is a classic sandwich generation squeeze. The phrase ‘sandwich generation’ is often used to describe a growing demographic group that needs to take care of both young children and elderly parents. Not just financially, but emotionally and psychologically too. And increasingly, this is becoming the default state for a large chunk of India’s middle-aged group.

Sadly, most advice on handling this phase of life is either too vague or too guilt driven (e.g. ‘family-comes-first’). Here is one way to think about it. Not perfect, but one which tries to make this intense phase a little less exhausting.

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