Twenty-seven percent of Americans are concerned about their parents’ financial security in retirement, and they are twice as likely to lack confidence in their own retirement prospects as those who are unworried about their parents, TIAA reported this week.
This finding was based on an online survey conducted by KRC Research in February among 1,003 U.S. adults.
Fifty-seven percent of respondents also reported that their parents’ financial planning for retirement had influenced their own planning. Forty-four percent said they avoided taking on significant debt, and 38% said they had consciously limited their everyday spending on nonessential items.
“We’ve seen firsthand what the data shows: People who are concerned about their parents’ financial well-being in retirement may be sacrificing their quality of life today out of concern for their own financial future,” TIAA’s chief financial planning strategist Daniel Keady said in a statement.
“A good financial plan that includes education, advice and lifetime income options for retirement can help build confidence that allows people to enjoy life today, without forfeiting their future retirement security.”
The TIAA survey found that pessimism about retirement security increased with age.
According to the survey, 52% of millennials described their parents’ financial outlook as excellent or very good, while only 35% of Gen Xers and 26% of baby boomers did so.
Their responses were similar when asked about their confidence in their parents’ current or future financial security in retirement. Only 47% of Gen Xers and 34% of boomers expressed confidence, compared with 60% of millennials.