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Sandwich Generation Faces Retirement Uncertainty

According to the survey, 78 percent of respondents fear that they will not be able to retire "comfortably" - a statistic that speaks to just how significant the financial burden is. In an effort to reduce this strain, 52 percent of Sandwich Generation-ers indicate that they will need to work part time during retirement.

Further supporting the evidence that the Sandwich Generation is feeling unprecedented financial pressure can be seen in the data which overwhelmingly highlights the fact that those surveyed are continuing to feel the effects of the most recent economic downturn. To this end, 61 percent of respondents view their parents' current financial situation as "negative," which is interestingly consistent with the finding that 64 percent view their own current financial situation as negative.

"Our country is continuing to reel after the economic events of the last two years," said Jeff Lewis, Chairman of the Board for Generation Mortgage Company. "Those who face the challenge of supporting their own retirement along with that of their parents are placed in an incredibly difficult situation, one that can feel overwhelming at times."

When baby boomers were asked to indicate how they are planning to fund their retirement, 60 percent indicated that they would rely on their 401(k) or IRA account(s) to sustain them through retirement and 37 percent noted that will turn to their home equity line of credit.

"When looking at the responses from this study, it became clear that baby boomers are still only relying upon their often underfunded retirement accounts and home equity lines of credit to support their retirement," said Lewis. "The truth of the matter is, when you look at the cost of maintaining your lifestyle in retirement, coupled with the increased price of supporting an aging parent, it becomes daunting and at times unrealistic to think that it can be met simply with what you have saved in your nest egg. The good news is there are financial instruments available, reverse mortgages being one of them, that can alleviate some of these stresses."

While the anecdotal notion that Americans continue to face financial hardship is not new, data from this survey more empirically spotlights the fact that 51 percent of Sandwich Generation respondents have, at some time over the last year, failed to make at a rent, mortgage, credit card, auto loan and/or a college loan payment due to having a lack necessary funds.

Interestingly, nearly one in four (23 percent) of those surveyed have restructured their financial savings plan in some way over the last year. This statistic is further validated, given that 23 percent of respondents indicated that they have lost a job over the last 12 months while 24 percent were forced to take a decrease in pay and/or benefits. How are they compensating? 73 percent indicated that they are trying to save money by spending less on entertainment and recreation activities.

Zogby International was commissioned by Generation Mortgage to conduct an online survey of 271 adults who have children and are Caregivers of parent(s). The survey was conducted from 8/9/10 to 8/11/10. A sampling of Zogby International's online panel, which is representative of the adult population of the US, was invited to participate. Slight weights were added to region, age, race, gender, education to more accurately reflect the population. The margin of error is +/- 6.1 percentage points. Margins of error are higher in sub-groups. The MOE calculation is for sampling error only.

About Generation Mortgage

Generation Mortgage Company is the largest privately owned reverse mortgage retailer and wholesaler in the United States, a member of NRMLA (National Reverse Mortgage Lenders Association) and is Better Business Bureau A+ accredited. With its sole focus on reverse mortgages, Generation Mortgage is known in the industry as offering the "gold standard" in customer service, providing loan servicing for nearly all of its retail and wholesale reverse mortgage loans. Licensed in 47 states, Washington, DC and Puerto Rico, Generation Mortgage offers FHA-insured HECM (Home Equity Conversion Mortgage) loans, including fixed and adjustable rates, HECM for Purchase and Generation Mortgage's new proprietary jumbo Generation Plus reverse mortgage loan. Generation Mortgage benefits from the strategic and financial support of its controlling shareholder, Guggenheim Partners, LLC, a renowned financial services firm with more than $100 billion in assets under supervision.

NMLS #1319; Corporate Office: 3 Piedmont Ctr, 3565 Piedmont Rd NE, Ste 300, Atlanta, GA 30305; Arizona Mortgage Banker License #0909296, 6740 E. Camelback Rd, Ste 104, Scottsdale, AZ 85251; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act; Colorado, To check the license status of your mortgage loan originator, visit http://www.dora.state.co.us/real-estate/index.htm; In CT, licensed and DBA as Generation Reverse Mortgage, Inc.; Georgia Residential Mortgage Licensee #22292, Generation Mortgage Company, 3 Piedmont Ctr, 3565 Piedmont Road NE, Ste 300, Atlanta, GA 30305; Illinois Residential Mortgage Licensee #MB.6760368; Kansas Licensed Mortgage Company #MC.0001660; Massachusetts Mortgage Lender-ML3240; Licensed by the Mississippi Department of Banking & Consumer Finance; Missouri Residential Mortgage Loan Broker #10-1782-A, 7280 NW 87^th Terrace, Ste 210, Kansas City, MO 64153; Nevada #2970, 907 Tahoe Blvd, Ste 2, Incline Village, NV 89451, Phone # 775-831-0161; Licensed by the New Hampshire Banking Department as Generation Mortgage Company d/b/a Generation Mortgage Company, Inc; Licensed by the N.J. Department of Banking and Insurance, 51 JFK Parkway, Ste 114, First Floor West, Short Hills, NJ 07078, Phone #973-218-2418; Licensed Mortgage Banker- NYS Banking Department; Oregon License #ML-4445, Licensed by the Pennsylvania Department of Banking; Rhode Island Licensed Lender; Licensed by the Virginia State Corporation Commission #MC-4832; Washington #CL-1319; Also conducts business in AL, AR, DC, DE, FL, HI, IA, ID, IN, KY, LA, MD, ME, MI, MN, MT, NC, ND, NE, NM, OH, OK, PR, SC, SD, TN, TX, UT, VT, WI, WV, WY. Not all products and options are available in all states. Terms subject to change without notice. Some people portrayed are professional models. (c)2010 Generation Mortgage Company. All Rights Reserved.

CJP Communications
Stephen Kennedy, 203-254-1300 ext. 118
skennedy@cjpcom.com