DRACUT, Mass. — Dinnertime at the Gomez House in the Boston suburb of Dracut means feeding three generations.
“It’s crazy,” Alicia Gomez told CBS News about her family of seven living together under one roof. “We are raising our nieces and nephews. My mother lives with us and my sister lives with us as well.”
Alicia, 56, is the chief operating officer of a nonprofit organization, and her husband, Chu Gomez, 58, works in logistics. They are part of the so-called “.sandwich generation” The story of a worker who supports both his young relatives and his elderly parents.
“I liken it to a turkey club sandwich because a club sandwich has a lot of layers and we have a lot of layers,” Alicia said.
According to the U.S. Census Bureau, such intergenerational arrangements account for approximately 5 million households in the United States. they can easily wreak havoc Retirement allowance system.
“We thought we could retire at 62 and still be young,” Chu said. “And the other day she said, ‘You’re going to work until you’re 70, right?’ I’m like, ‘I think so.’
Teresa Ghilarducci, a labor economist at the New School for Social Research in New York, says people in their 50s need to save as much of their income as possible.
“In your 50s, you may feel pressured to help your adult children,” Ghilarducci says. “You may feel pressured to help your elderly parents, but don’t sacrifice your own retirement savings.”
Although the Gomes have saved money, they also have more than $500,000 in debt, including their home, car and college loans for their two daughters.
Chu doesn’t expect to be able to pay off his college loans until he’s 71.
“Yeah, it’ll last a long time,” Chu said.
Gomez has an egg in her nest, but it’s not that big. If you’re in your 50s, there are several variables to consider. This includes having honest conversations about how long support will last for relatives, such as older children. Other options to consider: Temporarily reducing your retirement savings to pay off high-interest debt, such as credit cards. The next important thing is to increase your savings.
Alicia said the couple has enough income to cover their living expenses.
“We have enough, but it’s not where we need to be,” Alicia said. “What would happen financially if one of us got sick or got laid off?”
In fact, both Alicia and Chu were fired in their 50s.
“Well, people in their 50s are very likely to lose their career jobs,” Ghilarducci says. “So take care and keep working.”
While Alicia took a consulting job and was later rehired, it took Chu six months to find a new job during the pandemic.
“If you get fired…you can’t do a 401k,” Chu said. “So it was six months worth of 401k that didn’t go into there.”
During that period, Chu missed out on $13,000. 401,000 postsThat amount will be worth about $40,000 by the time he retires, according to calculations by John Kelly and the CBS News data team. That could have covered some retirement costs, such as health insurance. The average retired 65-year-old can expect to spend about $165,000 total on medical expenses during retirement, according to research from Fidelity.
For the Gomes, the pressure to retire never subsides.
“I never knew I would have to take care of so many families,” Alicia said. “Then, an unexpected event… alerted us.”
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