Should parents approaching retirement sacrifice their own financial security to help their young adult children? Apparently, many of them are, according to U.S. News & World Report.
More than 50 percent of baby boomers have let their young adult children move back in with them, rent free, according to a recent study by Ameriprise Financial. But over the last five years, parents in such situations have struggled to maintain financial stability.
"Parents have always helped their kids with college and education, but now it seems to be increasing pretty significantly," Suzanna de Baca, vice president of wealth strategies at Ameriprise Financial, told U.S. News & World Report. Over half of baby boomers said they worry their children won't have the financial means to have a secure retirement. "It's not just college, but prolonged support," de Baca added.
But do parents providing financial aid to their children know it's hurting their own finances? Five years ago, 44 percent of boomers said they were working on acquiring more savings, now that number is just 1 in 4. Only 10 percent of boomers said helping their children is hurting their own retirement, according to the article.