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Retirement Dangers: Adult Children – Closing the Bank of Mom & Dad

Last update on: Apr 20 2021

This article explores a new study that found high percentages of older Americans still provide significant, regular support to their adult children. It also points out that this can endanger the parents’ retirement and gives tips for avoiding the problems.

Cell phone bills, followed by transportation, rent and utilities, tops the list of living expenses, and with debt, parents are most commonly helping with student loans, followed by auto bills, medical debt and credit card bills.

“The worst case scenario is because the parents have helped their kids, and sacrificed their retirement, in 20, 25 years, the script might get flipped and the kids might have to help out their parents because they can’t afford to retire,” said Matt Schulz, senior industry analyst at CreditCards.com. “There is a real risk there.”

 

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