Money Matey

There is an interesting article in the Telegraph today about the financial burden on the so called “sandwich generation” the 45 to 54 year olds who have to look after elderly parents and young adult children financially. According to the Scottish Widows Savings and Investment Report 40% of people in this age bracket are unable to save anything. This is the highest number of non-savers in any age bracket, almost 3.5 million people across Britain.

This sandwich generation is a relatively new thing because of the increasing length of time adult kids take to move out because they simply cannot afford to get there own place.

Also according to the report it is, perhaps surprisingly, not those on the lowest incomes who are also struggling to save the most but individuals earning in the £20,000 and £30,000 price bracket. A third of all these individuals fail to save anything at all and those that do save, more than half are managing to save just 5pc or less of their salary.

Rising living costs and withdrawn benefits are cited as the main reasons that middle income earners are no longer able to put as much into their savings account as they once used to. In the last year child tax credits have been reduced greatly and the situation is getting worse as child benefits are being withdrawn for families with a high rate tax payer – even if the other parent receives a low wage or even no wage at all.