Ameriprise survey: Boomers prioritize family over retirement
According to a survey from Ameriprise Financial, despite increased uncertainty about the economy and their own financial security, baby boomers continue to prioritize their family’s needs over their own. While some baby boomers struggle to cover their own cost of living, they still strive to cover medical bills, college loans and utilities for their parents and adult children.
The goal of the survey was to look at baby boomers, their children and their parents. The same survey was conducted 5 years ago, with more than 1,000 people representing the different groups. The financial crisis and recession has changed people’s personal finance views.
All three generations feel less confident than they did five years ago. Boomers are failing to save money for retirement and they are continuing to support adult children and parents. Boomers don’t seem to realize that they are hurting their ability to retire. They also do not regret supporting family members.
93% of boomers have financially supported their children by helping with college tuition, assistance buying cars or allowing them to move back home and covering utility and food costs. 58% of boomers have assisted parents most commonly with grocery costs, utility bills and paying medical bills.
The report shows that 25% of boomers are actually saving for the future; instead they are trying to maintain what they already have put away. One-third of boomers feel that their assistance is having an impact on their retirement, but they believe that as long as they aren’t taking from their employee sponsored retirement accounts it does not affect their retirement savings.
Boomers are using money that has been allocated to regular savings to support their families, instead of using it in other areas. Advisors report that many boomers absorb the costs into their household budgets and that leads to a strain on lifestyles and savings.
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