It's pretty well-known that far too many baby boomers are ill-prepared for retirement, but rising gas prices and a weak economy are exacerbating that problem. Here are some of the scary statistics from a new survey released by the AARP:
  • Nearly 40% of people 45 and older have helped a child with expenses, including one-third of retirees.
  • 8% have helped a parent keep up with bills.
  • 1/3rd have stopped funding their 401(k) and 14% have cut back on medication.
  • 60% have cut back on entertainment expenses like eating out.
  • More than 25% are having difficulty making mortgage or rent payments.
If nothing else, these statistics are indicative of the perhaps ill-advised generosity of many baby boomers. 40% are helping children with expenses, and 1/3rd have stopped putting money aside for retirement. I wonder how much overlap there is there.

I know that people want to help their children. But underfunding your retirement to help out a younger person who has a lifetime of work ahead of them isn't noble: it's silly.

Just like they tell you on the airplane: Secure your own oxygen mask before you attempt to assist your child: you'll be more helpful to them that way.

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Reverse mortgage is a nice financial instrument for the senior citizens in the country who do not have adequate retirement fund at their disposal and whose age is 62 or more.

June 19 2013 at 8:22 AM Report abuse rate up rate down Reply