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Report: New survey finds more Americans are sacrificing
their retirement to help parents and adult children
February 2007 (Medialink)
- Saving for retirement can be a huge challenge. Now, a new survey finds
approximately 15 million working Americans aged 45 and over have taken on an
unexpected financial burden by supporting their own parents and their adult
The survey, conducted by
Putnam Investments, shows that one-in-five Americans in this group are
spending an average of $240 per month to cover expenses for their parents.
Meanwhile, approximately one-in-three are putting a roof over the heads of
at least one child aged 25 or over. Eight percent are writing rent checks
for their adult children, while 23% have taken them back into their homes.
William Connolly breaks down what Americans need to do now to help
them save for their future. He states that although for the most part people
are happy to extend their help, there is a cost to their own financial
well-being - as more Americans admit they will save less for retirement,
postpone retirement, or work in retirement as a result of their generosity.
About 43% of both groups
expect to work for pay during their retirement as a result of these
unanticipated expenses. A smaller but still significant percentage will save
less for their retirement or postpone it.
57% are "very pleased"
to be able to help their parents; and 38% feel the same way about their
Those who have used a
financial advisor are significantly more confident in having enough to
William T. Connolly,
retirement expert and chartered financial analyst
Connolly joined Putnam
in 1999 and is currently the senior managing director, responsible for
managing retail business - including mutual funds, separately managed
accounts, insurance products, alternative investments, telemarketing and
client-service organizations. He is also responsible for all of Putnam's
communications efforts. Connolly is a member of Putnam's Executive Board of
Directors and Advisory Council. He has 17 years of industry experience and
is a chartered financial analyst charter holder and a member of the Boston
Security Analysts Society.