We’ve reached a point in time where life span has increased and so have the financial responsibilities. For Baby Boomers, who are also considered the Sandwich Generation, financial challenges include saving for retirement, while at the same time helping to support their millennial children and caring for elderly parents.

We’ve reached a point in time where life span has increased and so have the financial responsibilities. For Baby Boomers, who are also considered the Sandwich Generation, financial challenges include saving for retirement, while at the same time helping to support their millennial children and caring for elderly parents.

A 2013 Pew Foundation survey found that half of Baby Boomers have aging parents and are raising a young child or supporting a young adult. And, nearly 15 percent provide financial support for both their parents and children. This new trend puts Boomers’ finances and their retirement nest egg at risk.

Here are the five most important lessons for Boomers to avoid financial pitfalls in caring for their children and aging parents.

Protect your retirement assets—put yourself first.
Don’t sacrifice your own financial health by raiding your retirement savings to cover college tuition or your parents’ long-term care. Consider student loans and ways to stretch parents’ savings and estate, or offset expenses with education grants or state and federal elderly care programs.

Plan to save more each month.
Prepare for the possibility that kids may move back home and aging parents will require financial help, and increase your monthly reserve.

Consider long-term care insurance for your parents and you.
Research policies to learn what’s covered and at what cost—it may help lessen the burden of nursing home expenses. Pay close attention to the insurance plan details, as insurance policies contain exclusions, limitations, reductions of benefits and terms for keeping them in force. Your financial professional can provide you with costs and complete details.

Research tax breaks for caregivers.
If your parents live with you for six or more months, you may be able to pay for caregivers and other expenses by claiming the dependent-care credit on your tax return or contributing to an employer’s dependent-care flexible spending account.

Set clear financial limits when kids move back.
Help your kids become financially independent by encouraging them to work, pay some rent or even help care for their grandparents.

Financial check-ups can help you stay on track with retirement spending. Meet with a Verve financial advisor today.

It’s Verve’s goal—in line with our guiding 7 Cooperative Principles—to provide education, training and information to help our members plan for the future and stay fit financially. We’re committed to keeping our members educated when it comes to their finances by providing tips on ways to plan for retirement.