The Generous Baby Boomer

Over the last few years, one group that has come under major financial hardship is the Baby Boomers.

In 2010, 35% of those over 65 in the United States relied almost entirely on Social Security funds alone. Some baby boomers have resorted to filing Chapter 7 bankruptcy.

With nearly 10,000 Baby Boomers entering retirement every day as of January 1st, 2011, the question must be asked: Where is Baby Boomers' money going?


baby boomers being generous

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Adult Children

A significant portion of the Baby Boomers' money goes to their own adult children.

Financial Assistance:

  • 93% of Baby Boomers claim to have offered financial support to their adult children.
  • Almost 3/4 of Baby Boomers (71%) have paid their child's college tuition or student loans.

Housing:

  • 55% of Baby Boomer let their adult children live with them rent-free.

Transportation:

  • 53% of Boomers helped their adult children buy a car.

Parents

As Baby Boomer age, their parents increasingly encounter more varied and costly health challenges.

  • 58% of Boomers help their parents in some financial way.
  • 22% buy their parents' groceries.
  • 15% pay their parents' medical bills.
  • 14% pay their parents' utility bills.

Savings

Baby Boomers are saving less than they should.

  • In 2007, 44% of Baby Boomers claimed they were trying to save money for the future. In 2012, that figure is down to 24%.
  • The percentage of those just trying to maintain what they have is 24%.
  • 68% would rather save than help their child pay off a credit card.
  • 57% would more readily offer long-term car insurance to their parents than save their money.

Retirement

Many Baby Boomers are drawing funds out of their retirement savings to help their adult children or elderly parents.

  • 10% of Boomers admit that helping their parents has negatively impacted their retirement savings.
  • Helping their children has affected 34% of Boomers' retirement planning.

The Baby Boomer's Heart

Despite hits to savings and retirement accounts, Baby Boomers still they they're doing the right thing.

Baby Boomers and their children:

  • Despite losses to savings, 86% would still offer financial assistance to their children if they had the choice to start all over again.
  • 20% of Boomers feel guilty about not being able to offer their adult children more financial assistance.
  • Almost half (47%) of Baby Boomers think their children won't be able to prepare financially for retirement.
  • 35% think their children are financially irresponsible.
  • Over half of Baby Boomers' children (56%) claim they either weren't exposed to budgeting in their youth enough or weren't exposed at all.
  • 52% of Boomers' children say they weren't adequately prepared for retirement planning by their parents.
  • About 30% of Baby Boomers' children believe their parents' attitude toward money was "live for today".
  • Only 11% of Baby Boomers' children believed their parents prepared financially for the unexpected.

This informative infographic was provided by Total Bankruptcy.

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This entry was posted on Thursday, October 18th, 2012 at 11:30 am and is filed under Bankruptcy News and Events. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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