319 views

'Sandwich gen' has knowledge gaps in intergenerational wealth transfer

They also do not have enough knowledge of succession planning.

Whilst having the pressure of financially supporting their parents and children, 69% of the sandwich generation has insufficient knowledge in managing intergenerational wealth transfer effectively, wealth management group, St. James Place Asia, said in its latest study.

Also, 69% of middle-aged adults who are still supporting their parents and kids do not have adequate knowledge around the tax implications of succession planning.

The study also indicated that more than six in 10 middle-aged adults said their financial achievements are being sacrificed.

In relation to this, two thirds or 66% said supporting their parents is reducing their savings for retirement and their kid’s future.

Despite these results, six in 10 of the sandwich generation still feel that they have an obligation to financially support their parents.

Working harder, saving less

Nearly four in five adults said investing in their children’s future raises pressure on their financial planning. 78% are concerned that their children will require and request more financial support than they can provide in the future.

The sandwich generation also faces a dilemma as 70% of them said their children should be put first than their parents but 77% said they are also concerned that they might be spoiling their children by providing too much financial aid.

Based on this finding, the study showed that the current sandwich generation is working harder but is saving less.

The survey conducted interviews of 2,780 respondents between the ages of 25 to 54 years old, which had investments in stocks, property, shares, and funds amongst others. Of the number, 1,360 are living in Hong Kong and 1,420 are in Singapore.

All respondents belong to households with a minimum annual income of $70,000 to over $250,000.

The Singapore population also puts pressure on the sandwich generation as the average life expectancy at retirement age has increased from 65.7 years when they were born in 1960 to 83.5 years in 2021 whilst the average age to give birth increased to 31 years from 27.5 years over the same period, based on government data.

Follow the links for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!