Question: A generation’s worth of 50-somethings may have felt a decade ago that retirement was a far-off concept, but now it is rapidly approaching. Many in the age group are part of the so-called “Sandwich Generation,” as they simultaneously support their adult children and aging parents, in addition to having to save for their own financial goals. How would you counsel people facing these issues?

Answer: Organize your financial priorities. At this point, saving aggressively for retirement should be at the top of your list. You likely still have other financial obligations, but it is critical that you don’t put retirement on the back burner. Try to find a balance between funding your family members’ needs — such as college or assisted-living expenses — as well as your personal savings. These decisions are often difficult, and may seem overwhelming, but having a written financial plan with guidelines for you and your family can help make them easier.

Q: If I already have a retirement plan, how do I save aggressively for retirement?

A: Kick your savings into high gear. If you’re already saving for retirement but have the ability to increase the amount you’re contributing to your 401(k) or IRA, do it. 

Know the maximum contribution you’re allowed to make each year, adjust what you’re saving accordingly and ensure you’re taking full advantage of your company’s matching program. If your savings are lacking, don’t panic, but recognize that you might have some catching up to do. The good news is, after age 50 you can make catch-up contributions to most retirement plans.

Q: After boosting my savings, then what?

A: Calculate what you’ll need for retirement. Set aside some time to determine the expenses you’ll likely incur during retirement. Keep in mind that the financial impact of health care costs and long-term care can be sizable — and that with the average life span increasing, you may need to rely on your retirement savings for 30 years or longer. Though they shouldn’t replace the advice of a professional adviser, online resources such as a retirement savings calculator can provide a base line to get you started. 

Q: With the cost of everything constantly going up, how can a person calculate what they’ll need for retirement?

A: You’ll need to account for the inflation and cost of living factor. Also, there may be expenses you will want to increase by choice, i.e., travel, if you want to do more of that in retirement. Health care costs will more than likely be higher than just the inflation factor due to the aging population.

Basically, what you’re trying to find is a base line, so checking out online retirement calculators such as bloomberg.com or kiplinger.com as examples may be a good place to start. 

You still will need to figure out a target amount of how much you’ll need, so to keep it simple, you can use your current gross annual income. Does it cover all current essential expenses (housing, food, utilities, etc.) as well as lifestyle expenses (travel, entertainment, etc.)? If it does, use that number to begin with as the target annual income you want in retirement.

The calculations are broad estimates, but it will give you something to work with. The main thing is to start planning sooner than later; and yes, get help so it won’t be so stressful.

Q: Being able to retire at 65 seems like a dream. What if the desire doesn’t pencil out with reality?

A: Be realistic. Retirement may be a possibility for you within five or 10 years, or it could be more distant. Regardless, now is the time to evaluate what you will spend your money on once you’ve retired and to discuss your retirement plans with your family.

Q: A plan is great if everything works out in accordance with expectations, but how do I plan for the “what ifs”?

A: Anticipate bumps in the road. Your role as a parent and a child is never ending, but as your family grows and changes, so should the level of financial support you provide. Have candid conversations with any family member you’re supporting financially, and set realistic expectations.

Q: Now that we’ve gone over all of that, what advice should I give my kids so they don’t wind up unprepared for retirement?

A: Start early and save, save, save. Pay yourself first by setting up a monthly systematic savings plan from your paycheck or checking account to your work retirement plan or Roth IRA or both. Out of sight, out of mind does work.