Boomers Raiding Savings to Help Parents and Kids
Posted On May 11, 2012
The savings rate among Baby Boomers has dropped dramatically since the Recession began. Instead, Boomers are using their would-be retirement savings to help out family members from generations who are having an even tougher time.
According to an Ameriprise survey, the share of Boomers saving for their own retirements has dropped from 44% to 24% since 2007. At the same time more than half of Boomers (58%) are providing financial assistance to aging parents. Almost all (93%) of them who have children are providing them with assistance including tuition and student loans (71%) and car buying (53%).
Despite the fact that Boomers’ financial support for family members will further imperil their already shaky retirement plans, Boomers wouldn’t do anything differently. 86% say they’d do it again if presented with the same choices.