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?
Use the HTML above to embed infographic on your site
*Please use the above code unaltered or include a citation of this site as the original source.
A significant portion of the Baby Boomers' money goes to their own adult children.
- 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.
- 55% of Baby Boomer let their adult children live with them rent-free.
- 53% of Boomers helped their adult children buy a car.
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.
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.
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.