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What is the Sandwich Generation? Causes and Tips to Overcome It
Being part of the sandwich generation, or those who are financially “squeezed,” is not easy. This generation bears the financial burden of their parents while also having to meet their own and their family’s needs. This forces them to manage finances carefully to handle urgent needs and achieve long-term goals.
In Indonesia, the sandwich generation phenomenon has long existed. According to data from the Central Bureau of Statistics (BPS), in 2023, the elderly dependency ratio reached 17.08 percent, meaning that for every 100 working-age individuals, 17 elderly people are dependent on them.
Causes of the Sandwich Generation
- Socio-Economic Effects
Many adult children are financially independent later in life, forcing their parents to continue supporting them, rather than preparing for retirement. - Poor Financial Literacy of Parents
Parents who lack financial management skills often leave their children trapped as part of the sandwich generation. - Increased Life Expectancy
As life expectancy rises, aging parents often require long-term financial and caregiving support.
Tips for Managing Finances as Part of the Sandwich Generation
- Create a Strict Budget
Plan your budget in detail and identify where you can cut expenses. Always monitor cash flow. - Prioritize an Emergency Fund
Make sure to set aside money for an emergency fund to handle unexpected expenses. - Invest for the Future
Start saving for long-term investments, such as retirement funds or children’s education. - Leverage Insurance
Consider health and life insurance, such as Smile Optima Flexilink with additional Smile Medical Extra Shield Pro from MSIG Life, to protect your parents and ease financial burdens. - Family Communication
Discuss financial conditions openly with your family and involve them in financial planning. - Find Additional Income
If possible, seek additional income sources to increase financial stability.
If you’re interested in setting up insurance for your parents, contact MSIG Life’s customer service via WhatsApp at 088-1234-1088 or call (021) 2650 8300. Stay updated on MSIG Life’s Instagram @msiglife for the latest information on insurance products!
