We have always heard how important it is to save for retirement, but what we may not know is that if we don’t, we risk our children taking a financial hit. Children who support their parents are unlikely to have reached their peak earning years, which means that their generosity could be compromising their financial well being. A study shows that children who support their parents gave out $12,000 on average per year. Surprisingly, those children were in financial debt of their own with student loans and credit card debt. Allowing your children to provide for you in retirement is keeping them from saving for their own retirement as well, which is why it is never too late to start thinking about improving your financial situation for retirement.
See Maurie Backman, If You Don’t Save for Retirement, Your Kids Might Suffer, Motley Fool, May 15, 2016.
