Sandwich generation carers have been found to be losing £6,268 a year to support elderly relatives due to cutting back on working hours, according to research by retirement specialist Just Group.
Its survey of 1,000 UK adults aged 45-75 who take care of an elderly relative found that respondents, on average, lose £522 of their monthly income.
Nearly two-fifths of respondents care for an elderly relative. Of those, 9% have either stopped working or reduced their hours (28%) to provide support. Among those who are the sole carer for an elderly dependant, 14% have left the workforce and 33% have cut back on their hours.
Around one in seven (14%) said their monthly income had reduced by more than £1,000 a month due to providing care and as a result of reducing their working hours.
Out-of-pocket expenses and hidden costs from caring responsibilities, such as travel costs and picking up the bill on everyday shopping, total an average of £100 per month, with 11% spending more than £200 every month.
Emma Walker, director at Just Group, said: “We’re familiar with the physical and mental toll the sandwich generation faces as they are squeezed between work, supporting children and caring for ageing parents. What isn’t thought about so often is the financial and professional price this generation pays for caring.
“Many scale back their working hours and some leave the workforce altogether to meet their caring commitments, with the knock-on effect that, on average, their income is reduced by hundreds of pounds every month. This often coincides with the period in their careers when people reach their peak-earning potential, a point at which many may have planned to use spare income to build up pension pots and pay off the mortgage. It’s important that people don’t overlook the impact stepping away from work can have on their financial future.”
