For many professionals in their 40s and 50s, being part of the Sandwich Generation means managing an increasingly complex financial reality. As parents live longer and children struggle to gain financial independence, the pressure to provide support in both directions grows. It’s a unique challenge—ensuring your own financial security while helping loved ones, all within a system that’s shifting due to rising living costs, housing affordability issues, and changes in aged care and tax regulation.
Without a structured plan, this stage of life can quickly become financially and emotionally overwhelming. The key is balance: helping your family without compromising your own stability.
Helping Children Without Harming Your Own Future
Many parents feel an instinctive need to help their children buy a home, particularly as property prices continue to rise. While gifting money might seem like the easiest route, it’s important to consider the long-term implications. A significant financial gift can reduce your own retirement savings and, without proper planning, could be lost in a relationship breakdown or financial dispute.
A structured loan, documented correctly, provides more protection. Some parents also act as loan guarantors, reducing deposit requirements, though this comes with risks—if your child defaults, you may be responsible for repayments. Another approach is co-ownership, where you purchase a share in the property, though this can complicate estate planning and tax outcomes.
A lesser-known but tax-effective strategy is the First Home Super Saver Scheme (FHSSS). This allows individuals to make voluntary super contributions, which can later be withdrawn for a home deposit. With a $15,000 annual limit and a $50,000 lifetime cap, it can be a powerful savings tool, as contributions are taxed at lower rates than regular income. However, it requires careful planning, as accessing funds isn’t as simple as drawing from a regular savings account.
Caring for Ageing Parents: Planning for the Inevitable
At the same time, many professionals find themselves supporting elderly parents, often navigating complex aged care decisions on their behalf. While most parents wish to stay in their own home as long as possible, home care costs are rising, and the transition to residential care can be financially demanding.
Understanding Centrelink’s aged care means testing is essential, as asset structuring can affect eligibility for government support. Decisions around selling or retaining the family home also have broader implications, influencing estate planning and aged care costs.
One of our clients recently experienced this first-hand. Debbie and James had been working with a family for years when the father requested a financial review to ensure everything was in order. While no immediate action was needed, the discussion reinforced the importance of having estate planning documents in place. Just a month later, the father had a health event, and because the financial and legal aspects had already been addressed, the family could focus on what mattered most—spending time together without added stress.
This highlights a crucial point: the real benefit of financial planning is often peace of mind. When unexpected events occur, having affairs in order makes all the difference.
Looking After Yourself: The Often-Forgotten Priority
Amidst supporting children and parents, your own financial well-being can take a back seat. However maintaining financial security requires active planning, not just reactionary decisions.
Superannuation is often neglected in these years, as income is diverted towards family needs. However, maximising contributions while still earning can significantly boost retirement savings and reduce tax liabilities. A common mistake is focusing too heavily on paying off a mortgage at the expense of building super. While debt reduction is important, striking the right balance between homeownership, investments, and retirement savings is key.
Beyond finances, emotional burnout is a real risk. Juggling multiple responsibilities can lead to career stagnation, stress-related health issues, and decision fatigue. Seeking professional guidance not only helps with structuring finances but also relieves the mental burden of navigating everything alone.
The Coming Wealth Transfer: Why Planning is Critical
One of the most significant financial shifts in history is now underway. The Baby Boomer wealth transfer is expected to reshape financial landscapes over the next decade. According to KPMG’s analysis, this shift will see an unprecedented transfer of assets, with Gen X now set to inherit and manage vast sums of wealth.
However, inheritance isn’t always straightforward. Many individuals receiving substantial assets for the first time don’t know how to structure them effectively, potentially leading to unnecessary tax burdens or mismanagement. Ensuring a clear succession plan, estate strategy, and structured investment approach is crucial.
The ATO has also flagged wealth transfer as a priority area for 2025, focusing on ensuring taxes are properly paid when assets change hands. While we’re not tax advisers, we work closely with specialists to ensure our clients make informed decisions and minimise risk. More than ever, early planning is essential to avoid unnecessary costs and ensure wealth is transferred efficiently.
Planning Ahead: Securing Multi-Generational Wealth
For those in the Sandwich Generation, financial planning isn’t just about the present—it’s about creating a framework that supports multiple generations without compromising personal stability. The goal isn’t just to distribute wealth but to structure it effectively so that it serves its intended purpose.
This requires proactive discussions, not just with your financial adviser but within your family. Too often, inheritance and estate planning discussions happen too late, leading to disputes, lost opportunities, and avoidable tax consequences. Transparency and structured planning ensure assets are managed wisely, reducing stress for all involved.
Final Thoughts: Taking Control of the Future
Navigating the responsibilities of the Sandwich Generation isn’t easy, but with the right financial strategies, forward planning, and expert guidance, it’s possible to support your family while securing your own future.
If you’re facing these challenges, now is the time to put a structured plan in place.
To continue this conversation, please contact Brett Cribb, Steve Nicholas, James Marshall and Debbie French at +61 (0)7 3007 2007, or email info@stratusfinancialgroup.com.au
If you have a family member, friend, or colleague facing these challenges, we encourage you to share this article with them. A simple conversation today could make a meaningful difference—not just to their financial future, but to their family’s well-being and peace of mind.
Stratus Financial Group helps individuals, families, and retirees manage their complex financial affairs and coordinate their professional advisers.
Stratus Financial Group and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306. This is general advice only and does not take into account your objectives, financial situation, or needs, so you should consider whether the advice is relevant to your circumstances. Read the relevant Product Disclosure Statements (PDS) before making any financial decisions.
🔗 Related Reading: KPMG Report on Wealth Transfer