The Impact of Supporting Adult Children on Parents Retirement Security

 Risking Retirement: The Trade-offs Parents Make to Support Their Grown Children

Risking Retirement

Considering the financial strain parents face while supporting their adult children, do you believe there should be more emphasis on teaching financial independence to younger generations? Why or why not ?

A recent study found that 47% of parents are still financially supporting their adult children, spending an average of nearly $17,000 each year on various expenses like groceries, cell phone plans, health insurance, and car insurance. 

This ongoing support can significantly impact parents' retirement security, as they divert funds away from their savings. 

Many observers note that today's young adults, particularly Millennials and Generation Z, face a host of financial challenges that their parents didn't encounter at the same age. 

These challenges include lower wages, larger student loan debts, and higher costs of living, such as housing and food. 

Despite improvements in the economy, evidenced by higher employment rates and economic growth, a significant number of young adults are still reliant on their parents for financial assistance, suggesting that the economic recovery has not reached them. 

The study also found that the number of parents risking their financial security to help their children is increasing, with 58% admitting to doing so—a significant jump from previous years.

 The study revealed that 61% of adult children who still live at home contribute nothing towards household expenses, further highlighting the financial strain on parents.

Red Also:

Realistic challenges for Americans in search of retirement


Comments