Crisis of 2008 prepared ‘sandwich generation’ for Covid

More than three fifths of the ‘sandwich generation’ feel better equipped to deal with the impact of Covid because of lessons learnt during the 2008 financial crisis.

People aged 40 to 59 are referred to as the sandwich generation because they are likely to have responsibilities towards both their children and elderly parents.

‘Sandwich generation’: A third expect to cut back on essentials to cope, one in ten say that they are likely to use a food bank and one in six expect to take on more debt

According to Killik & Co, the investment house that carried out the survey, many people of this generation learnt financial lessons the hard way during the banking crisis of 2008-09 and the ensuing recession. However, they also built resilience as a result, which is now paying off in the global pandemic.

One in five say that they are now more cautious about spending, while one in ten have increased their emergency savings – actions triggered by their experiences of nearly 13 years ago.

Svenja Keller, head of wealth planning at Killik & Co, says: ‘It’s interesting that those who were close to age 30 at the time of the 2008 recession feel that this experience has helped to shape their financial management and preparedness overall. That stage of life – as you settle into working life – is a fantastic time to lay down healthy financial habits.’

The findings come as a new study from the Financial Conduct Authority reveals that more than 14million adults in the UK have ‘low’ financial resilience.

A third expect to cut back on essentials to cope, one in ten say that they are likely to use a food bank and one in six expect to take on more debt.