Supporting parents as well as children can be a monetary strain, but it doesn’t mean you can’t retire on time.

The “sandwich generation” are adults that are supporting adult (possibly college-age) children as well as aging (possibly sick) parents, and make up about 15 percent of middle-aged adults. This generation is in for some tough decisions as well as tough conversations, as it is inevitable that sacrifices will need to be made at some point, financial advisers say. This is to ensure your children do not inherit this burden when they themselves have children.

It is easy to see how retirement can be put on the back burner when familial monetary obligations exist, but it’s a necessary thing that you need to start planning for. Although your children may have to sacrifice somewhat now, it will be worth it in the long run when they will not have to support you the way you are supporting their grandparents. Here are five steps to get you on the right track for retirement.

Set it Aside for Yourself

A good way to set aside money for your retirement is to take advantage of retirement plans that your employer already has in place. Jim Poolman, executive director of the Indexed Annuity Leadership Council says to also capture any profit-sharing of matched funds. “If you get the full company match, that’s a 100 percent return.” This account is set up to steadily grow, do not take money from it to pay for your kids or your parents, it will end up costing you. When you pay yourself back, it’ll be with interest.

Trim

Dan Houston, president of retirement, investments and insurance with the Principal Financial Group says, “If you have less than 10 years of a working career in front of you… you have to have a serious realignment of  your priorities.” Whether that means downsizing your home or reducing your number of vehicles, you need to trim your expenses now so that you can still align your future along with financially supporting your children and parents.

Analyze Available Resources

Rather than waiting to see what is needed by your children and parents, take a moment to examine what possible resources are available to either. You may have assumed grandparents would be able to chip in for grandchildren’s college tuition, but now that you’re supporting both parties things need to change. Your kids may need to chip in to help pay for their schooling as well as trimming expenses in their own lifestyle, and possibly will need to be responsible for their own post-grad payments on student loans. If living and medical expenses of your parents are becoming too taxing, it would be worthwhile to start selling assets of the estate in scheduled and agreed upon format. Things to consider before selling assets:

• Examine life insurance plans because some have conversions or cash value.
• Take a second look at gifting plans, some states have changed the process from 3 to now 5 years, and are becoming more scrutinizing about asset distribution fraud. It is still smart for seniors to give away assets, just make sure you know the laws and regulations surrounding you.
• Appraise assets at market value. It can take time to sell big ticket items, so it’s best to be prepared and set things at an appropriate market value to save yourself time. This will help you get the money deserved for the items without going through a long, haggling sales process.

Weigh the Consequences

Some financial decisions you make today will require a sacrifice later on in life, and vice versa, sacrifices today can result in money later on. It may seem daunting to think about retirement because your children’s and parent’s needs are right in front  of you, but keep in mind that over-spending, even for a good cause, can result in monetarily hard times later on in life for you and those you support. It is best to divert some of your spending money to a retirement fund so that you have concrete money for the future.

Activate Plans for Your Parents

“You get a sense of control, and the best that can happen is that you save money by being proactive” and absorbing legal and medical expenses on a non-emergency basis, Poolman says. An annual financial checklist can help you reassess your necessities and resources each year. Your kids could have opportunities to have paid-for insurances, or your parents will have a change in their will due to selling of their assets.

Use your parents’ situation as an example, and take the right steps today to ensure your own financial stability in the future. Houston says that monitoring your plan but not micromanaging it is the smartest solution. Come up with a plan that is stable in the long-term, i.e addresses inflation and income. “When you’re protected for income, principal, volatility and inflation, you’ve solved for your priorities,” Houston says.

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