Parents will do anything for their kids, but that could be coming at a huge cost ‒ to themselves, according to a new study.
More than a third (36%) of the 3,000 parents surveyed by Ameriprise in January worry that supporting their adult children may derail their retirement plan, yet they continue to lend their kids a hand. More than 6 out of 10 (63%) parents pay ongoing expenses like living costs and phone bills for their adult children, and 76% have either paid or plan to pay for major one-time expenses like a wedding or down payment on a home, the survey showed.
“It’s admirable, for sure, but underscores the need for parents to be planful for their own financial future,” said Deana Healy, vice president of financial planning and advice at Ameriprise. “First and foremost, it is about being intentional – what you need for your own retirement and goals, then what can I afford and what do I want to afford” to help the children.