“Social changes in the last couple of decades mean that retiring baby boomers may end up being the new “Sandwich Generation”, still financially responsible for children and/or parents. 

“When the term “Sandwich Generation” was first used in the 1980s, it referred to couples in their 40s and 50s who were responsible for their parents and with dependent children still living at home. 

“But with the elderly living longer, and children staying at home and remaining dependent on parental support for longer, the sandwich generation can now include pre-retirees and early retirees as well as the middle-aged. 

“As people are living longer, it is not uncommon for people in their early to mid 60s to have parents in their 80s to worry about as well as children in their 20s or early 30s who are still at home or studying. 

“There are more Australians with tertiary education than ever before, and more people are living with their parents for longer. 

“Another recent social phenomenon is retirees with dependent children, either from second marriages or because they were late starting families. 

“If a couple is having children in their late 30s, or even early 40s, it is likely that they will retire when their children need support during tertiary education. 

“All these trends mean that retirees are increasingly likely to have dependent children living at home and requiring significant support. 

“When children live at home there is nearly always a level of dependency through not paying rent or contributing adequately to the family housekeeping budget. 

“As a result of children still living at home, retirees may also be trapped into staying in the family home and not having the freedom of downsizing to release equity and live in an easier-to-care for home. 

“These issues are a relatively new phenomenon, but increasingly need to be taken into account in retirement planning,” he said. 

Mr Galagher said that retirees with aged parents is also an increasingly common scenario. 

“For those with aged parents it may be a peace of mind issue that can be satisfied with seeking quality care and a separate financial plan for the parents that best utilises their own wealth and assets. 

“But even if retirees’ parents are financially secure, there can still be health and lifestyle concerns.” 

Mr Galagher said that parents should start involving their children in their retirement planning sooner rather than later. 

“With children still at home, early planning and communication can help so that offspring appreciate how their parents’ needs and aspirations will affect them. 

“While planning is always the key, early communication and discussion plays a major role so that all family members can understand the others’ point of view and desires,” he said.

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“We have to start thinking in terms of the entirely different needs of two types of retirees – the early or Active Retiree, and the less active Elderly Retiree.

“The needs of more Elderly Retirees are quite different from those of Active Retirees and have to be factored in by service providers.

“The first stage of retirement is characterised by being active, independent and seeking experiences or pursuing dreams. Then there is an expanding second stage, characterised by increasing frailty, less activity and more need for day-to-day support.

“For example, the number of Australians aged over 85 has doubled as a percentage of the total population in the last 20 years and at the same time increased in numbers by over 170%.

“The number of Elderly Retirees is only going to increase further as Australians live longer and baby boomers grow older,” he said.

Mr Galagher said that Active Retirees are well served by financial services and other sectors, but Elderly Retirees are not so well served and, as numbers continue to grow, more strain is placed on the resources that are available.

“Indeed, Trustee companies are just about the only entities that have the experience and record of service, products and knowledge, including wealth management, to deliver the across the board help that less active and frail, self funded Elderly Retirees need.”

Mr Galagher says that this can involve the complicated and technical, such as intergenerational wealth transfer and acting under power of attorney, to the mundane.

 He uses the example of Equity Trustee clients seeking help in finding of reliable service providers to look after home maintenance and even getting someone to change light globes.

“Trustee companies have been doing this type of thing for years, so we are used to arranging such support for clients,” he said.

“We are familiar with responding to client needs when they still take an interest in their affairs, setting up financial arrangements to reflect their wishes, and then acting under enduring power of attorney when they are no longer capable.

“People with families can usually rely on them for help, but not everyone in Australia has family nearby for all sorts of reasons. 

“At the same time, many older Australians don’t want to be a burden on their children or grandchildren and want an entity they can trust to look after their interests,” he said. 

Mr Galagher says that recognition of the need to provide an increasing range of services to clients as they become less active as Elderly Retirees is behind Equity Trustees’ acquisition of two businesses that provide services specifically to the elderly announced this week. 

They are Lifetime Planning, which provides special financial planning advice and expertise specifically for the elderly, and Tender Living Care, an aged care residential placement consultancy which helps elderly clients choose accommodation in nursing homes and aged care centres according to their needs and requirements. 

Mr Galagher predicts that providing services to Elderly Retirees will see significant growth in the immediate future in all areas.

“The increased need for medical care and aged accommodation has been well documented. There will be a corresponding increased demand in specialist financial services and hands-on assistance to manage the affairs of people, either no longer able to be, or not interested in being, involved themselves,” he said.

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