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.
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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.”