March 06, 2015
Baby boomers are risking their retirements by continuing to support their adult children, according to a July 2014 survey.
For the 56 percent of consumers indicating they play a financially supportive role in their loved one’s life, nearly 20 percent stated they are unable to pay off their debts or are accruing more debt because of it and 12 percent have delayed retirement.
“In today’s economy, many middle-aged consumers are getting hit twice as hard when it comes to financially supporting family members,” Steven Trumble, president and CEO of American Consumer Credit Counseling, said in a statement. “Amid rising college tuition costs and the sharp increase in elder care services, some consumers are forced to make tough financial decisions and delay their own financial goals.”
An online poll by ForbesWoman and the National Endowment for Financial Education found that 59 percent of parents still support their adult children who are no longer in school.
Similarly, more than a third of adult millennials receive regular financial assistance from their parents, according to a November 2014 survey by Bank of America. One in five still live at home without having to pay rent or expenses.
Whatever the reason, many parents struggle to draw the line when it comes to supporting their kids, but it is ultimately hurting their own financial futures.