The transfer of money to help family members stay afloat is flowing from older family members to younger ones, putting Baby Boomers’ retirement at risk, according to a just-released report by the Employee Benefit Research Institute.
EBRI’s report, Intra-Family Cash Transfers in Older American Households, found an overwhelming generational transfer of money flowing from older adults to their younger adult relatives.
From 1998 through 2010, EBRI found an increasing trend of transfers from older households (those where at least one member of the household is 50 or older) to family members.
Very few older households (4% to 5%) receive cash transfers from their families, compared with those who transfer money (38% to 45%) to their younger family members, the report state.
EBRI defines cash transfers as “giving money, helping pay bills, or covering specific types of costs such as those for medical care OR insurance, schooling, down payment for a home, rent, etc.” Both loans and outright gifts are counted.