College or retirement? That’s the question facing boomers struggling to decide where to cut their budget.
“I’ve seen too many horror stories where people feel this obligation to pay for their children’s college because maybe their parents paid for theirs,” Drew Denning, vice president of income solutions for Principal Financial Group Inc. tells the Associated Press. “They’re five to ten years from retirement and it jeopardizes their retirement income.”
Tuition for the 2008-09 school year jumped 6.4 percent to an average of $6,585 for in-state students at public four-year institutions and 5.9 percent to an average of $25,143 at private institutions, according to the College Board. While parents see college as an obligation for their children, the top priority, the AP reports, should be retirement.