Happy Halloween everyone! For most of us, I think it’s going to be a very soggy Halloween! Ah well – more candy for me. . And now I’m going to cover a scary topic – why it’s so hard to save for retirement!
There was a recent post on Everyday Money on this topic. According to the article, a lot of boomers are approaching their retirement years without a lot saved up. Is it because they’re living high on the hog? Or because they aren’t good with money? While these may be possibilities, apparently one of the biggest issues is that they’re too generous!
Here are the top 3 issues:
- Spending for education (for their children, not themselves) has increased by 80 percent for 45 to 54 year olds, and 22 percent for 55-64 year olds.
- Spending on adult children has jumped as well – with almost 60 percent of parents giving adult children who are not in school financial support
- Spending on housing has gone up by 25 percent – due to house size and rising expenses (like, say – your kids moving back in!)
Wow. This is not a pretty picture. Most financial advice guru’s always say you should never sacrifice your retirement funds for your kid’s education. And yet, plenty of parents seem willing to do so!
I have to admit I’ve seen this is in my own extended family (ah, the joys of posting anonymously). My step-mother in law (yup, you read that right), has 3 children. At some point in time or other, all of her kids, and their spouses/significant others have moved back in with her and my father in law. Heck, my step-sister in law and her husband even got the master bedroom! And 2 of the 3 step in laws have moved back in with their own kids in tow. I can’t even imagine how much this has cost them over the years in terms of food, utilities etc! I’m pretty sure the moochers weren’t paying for much, if anything. My husband moved out a year after college, and hasn’t taken a thing from them since – not that they have any extra to give out! . They’re lucky they both have good pensions waiting or they’d be up a creek.
Do you have anyone like this in your family? Are you concerned your kids will clean you out?