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Baby Boomers could end up $227,000 richer if they stop bankrolling their adult children

December 06
16:19 2017

Parents sometimes pay for their adult children’s expenses — and it could be hurting their retirement.

In fact, they might be missing out on a quarter of a million dollars in retirement savings by supporting their adult children, according to an analysis by NerdWallet.

80% of parents with adult children are paying or have paid for at least some of their children’s expenses, according to a survey on the spending and saving habits of US adults by Harris Poll on behalf of NerdWallet.

Looking under the hood of that data, the survey found parents of adult children are paying or have paid for the following:

  • 56% for groceries
  • 40% for health insurance
  • 21% for rent or housing outside the family home
  • 39% for the child’s phone bill
  • 34% for car insurance

The two most expensive costs are living expenses and college tuition. And parent’s retirement savings could be $227,000 higher if they chose to save that money instead of putting it into their child’s living or schooling expenses, NerdWallet found.

Continue Reading at Business Insider

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