Fears About Parents’ Finances Causing Some U.S. Adults to Cut Spending

According to an online survey conducted by TIAA consisting of 1,003 American adults, 27% of adult children lack confidence in their parents’ financial security, and are twice as likely to lack confidence in their own retirement. The older the generation, the more concerned they are about their parent’s financial security, according to the results of those surveyed: 35% of Generation Xers and 26% of baby boomers believed their parents were in good or excellent financial circumstances, compared to 52% of millennials.

Many of the next generations also believe that they will be handling their own personal finances better than their parents did. 39% of Generation Xers and 35% of baby boomers disagreed that their parents’ approach to saving and investing is admirable and one to emulate, while only 25% of millennials felt the same.

Dan Keady, chief financial planning strategist at TIAA, noted that people’s financial habits and retirement planning are shaped by the experiences of their parents. “The confidence that millennials have about their parents’ finances may actually create a false sense of security, especially when individuals mistakenly believe they will receive an inheritance when their parents don’t have the same plans or intention.”

See Jacqueline Sergeant, Fears About Parents’ Finances Causing Some U.S. Adults to Cut Spending, Financial Advisor, May 20, 2019.

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.