Spending on adult children cuts into retirement savings
A study by NerdWallet shows that even when kids should have left the nest, parents often are still paying their expenses, which could be costly during retirement years. Survey results showed a parent’s retirement savings could be $227,000 higher if they chose to save that money. “Many parents of children 18 and older are paying or have paid for their adult children’s basic living costs, including groceries (56 percent), health insurance (40 percent) and rent or housing outside the family home (21 percent),” the article explained.
Some parents are also covering or have covered their adult child’s cell phone bill (39 percent) and car insurance (34 percent).
The survey was conducted online by Harris Poll on behalf of NerdWallet and asked more than 2,000 U.S. adults — 656 of whom are parents of children 18 and older — about their spending and saving habits. It found that 80 percent of parents of adult children are covering, or have covered, at least a portion of their adult children’s expenses after they turned 18.
Read the full article here.