NU Online News Service, Dec. 4, 8:44 a.m. – Allstate Financial, Northbrook, Ill., has released a survey that finds that baby boomers who already feel sandwiched between financial obligations to children and aging parents can look forward to more of the same, plus unprecedented levels of debt for themselves, in retirement.
According to “Retirement Reality Check,” created by Allstate Financial, a business unit of The Allstate Corp., Northbrook, in conjunction with Harris Interactive, Rochester, N.Y., more than one in three baby boomers (37%) will be financially responsible for parents or children during retirement. And 7% of boomers will be financially responsible for both parents and children in retirement.
That is on top of the extensive debt that three out of five baby boomers (58%) surveyed expect to pay off during retirement, Allstate Financial says.
“Our research paints a very serious picture as far as the many obligations tomorrow’s retirees will face,” says Tom Wilson, president of Allstate Financial.
According to the survey, one in five retired baby boomers will pay college tuition for one or more children. Fewer than one in 10 (8%) of the boomers surveyed said they expect financial support from their children in retirement, though twice as many boomers (16%) said they currently support their parents.
To defray costs associated with retirement, most baby boomers simply won’t retire completely. Seventy-three percent of the respondents said they will continue to work in some capacity during retirement. And the majority of boomers surveyed (68%) said they would have to save money during retirement.