Parents spend twice as much on adult children than saving for retirement

Advisors


Parents spend $500 billion annually on their adult children. But they’re only putting $250 billion away per year toward their own retirement.

That is according to a new study from Merrill Lynch and Age Wave, which takes a look at how parents engage with their children financially.

More from Fixed Income Strategies:
What you need to do now before this tax strategy disappears
One question may determine how well you live in retirement
Why these teachers’ retirement plans aren’t making the grade

If you’re one of the parents who is still giving money to your adult children, you’re not alone. To that point, 79 percent of parents continue to provide funding to their adult children, the research found.

“It’s not unusual to understand why parents want to do whatever they can for their children of all ages,” said Lisa Margeson, managing director and head of retirement client experience and communications at Bank of America Merrill Lynch. “What was very concerning is that about a quarter were willing to pull money from a retirement account to support their adult children.”



Source link

Products You May Like

Articles You May Like

Confused about tax return changes? Here’s how to find your new bracket
GE shares fall to $6.66 a share, lowest close during financial crisis
Richard Branson hopes to be in space next year with Virgin Galactic
Consumer spending to keep hopes on economy alive
Treasury yields fall; US-China trade talks, data in focus

Leave a Reply

Your email address will not be published. Required fields are marked *