Boomers delaying retirement to help kids, aging parents: study
Too many baby boomers may be sacrificing their retirement goals and plans to help ease some of the short-term economic pain facing their children and their own parents, according to a recent study from Ameriprise Financial.
Nearly all boomers surveyed (93%) have provided some form of financial support to their adult children.
The list includes helping them pay for college tuition or loans (71%), allowing them to live at home rent-free (55%) and helping them to buy a car (53%). Many are also helping their kids pay for day care, rent, utilities and car payments.
Also, more than half of all boomers (58%) help their parents with daily household tasks and home maintenance. In addition, many are also chipping in for groceries (22%), medical bills (15%) and helping out with monthly utility bills (14%).
But no one is complaining, it seems. Despite uncertainty around meeting their own financial goals, a majority of boomers (86%) say that if they had to do it again, they would still support their adult children financially. In fact, 20% say they feel guilty about not being able to do more for their adult children.
Are you helping your adult child with expenses? To what degree? Is it hurting your ability to save for retirement?
By Gordon Powers, MSN Money
Posted by: Mr. Negative | Aug 14, 2021 2:49:20 PM
It is amazing how times have changed. I wonder if our parents needed that much support from their parents? Or have the times really changed that much and the cost of living is that high now?
Posted by: Kyuro | Aug 14, 2021 5:17:41 PM
The cost of living is absolutely that high now, Mr. Negative, particularly relative to falling wages. And that's if these adult children can secure a job at all, which is incredibly difficult pretty much everywhere in the world right now. Being only 20 myself, I would know. Even retail jobs are competitive now. I'm not surprised that this sort of thing is going on - it's a symptom of a greater problem that's only going to get worse if it isn't resolved soon.
Posted by: Mom of 2 with one on the way | Aug 14, 2021 9:07:50 PM
As a 35 year old mother of two with one on the way I have to say I am disgusted with the 20 somethings who move back home after University only to complain they just can't find a job. They seem to have no shame in asking their parents for whatever they want. If you can't afford to buy it yourself than you can't afford it. Parents who give in to these requests are only reinforcing their child's economic outpatient status.
If you want to work there is plenty of jobs but you have to get out there and apply for them, they don't just come calling. I went to University with the goal in mind that I needed an applicable degree. I have worked full time for 12 years minus two maternity leaves and have never asked my parents for a dime.
Playing the victim never gets anyone far in life.
Posted by: Steve | Aug 14, 2021 11:23:20 PM
"The list includes helping them pay for college tuition or loans (71%)" " allowing them to live at home rent-free (55%) "
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Gee. That is puzzling. PERHAPS... Now I'm going to go out on a limb here PERHAPS the reason they are able to help is BECAUSE typical students have debt from education. WHEREAS many many baby boomers could get a summer job and cover all their education and living expenses.
AND
Perhaps many houses were only 3x the average annual income of a university graduate.
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I won't say this is a very badly researched piece, but..... I will say that when my Father/Aunts/Uncles when to University there were lots of jobs, Grants, and no crippling tuition or starter home prices. They could work a summer job, and cover all their living costs (car included), graduate with no debt and walk into a good job, good house, good lifestyle (new car every 3 years, etc).
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The baby boomers pathetic voting patterns have made themselves temporarily rich at the long term expense of their children's and grandchildren's futures.
Throwing them a few pieces of silver might assuage some guilt but it won't help them fix the totally messed up society they have left. (has anyone looked at the cost of education and levels of personal debt since Trudeau sailed into office on the rapturous praise of the baby boomers?)
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Question is, who helps the baby boomers in their older age when the generation that follows has been bankrupted by mortgage costs, student debts and IVF treatments required because of delayed families?
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In my case, I have no more university debt and my parents and in-laws have done fantastically through house price inflation (us, not so much). My concern is what my children will do when they graduate High School and what we will do when my parents & in-laws savings and assets are evaporated by care home fee's while they still have 10 more years of high care ill health left to live.
Posted by: Mr. Negative | Aug 15, 2021 5:36:01 PM
I have to disagree with mom of two: this has been happening since you were in a diaper - it just so happens - instead of talking about the age group who caused this mess - we divert to the youth of the country.
People live like this all over the world not just 20 somethings - i know 45 year old men who have 3 kids and wifes and still live at home with their parents. Criticize if you will, but not everyone can be well off. Not everyone can have billions of dollars that they continue to save and keep to one day be the richest person while other starve.
My point is - before you go knocking the 20 somethings - wait until your kids grow up and then see what happens. You never know - our generation could be more greedy and our kids will be the sweatshop workers for nickels a day - then we can cut out the tranporation costs and make more profits.