Survey: Adult Children Spending Retirement Savings on Elderly Parents
A survey conducted by financial services group PNC sheds light on an unsettling trend in eldercare: one-third of Americans who are caregivers for an aging parent will spend at least 10 percent of their retirement savings to manage their care.
Published in the fall 2014 Perspectives on Retirement survey, these findings offer insight into the population charged with caring for many of the nations seniors. According to the data, 60 percent of Americans are nervous about providing care to an aging relative while preparing for their own retirement, while 43 percent of this group will be wholly financially responsible for their relative.
Respondents in the PNC survey ranged from 35 to 75 years old, roughly 20 percent of whom were retirees. The group of 1,021 participants represented 37 states and responded to the survey any time from July 31 to Aug. 12, 2014. Participants also had at least $100,000 in total investable assets and all were equally involved in making the long term financial decisions in their household.
The survey shows that roughly one-third of respondents are delaying luxury purchases or travel in anticipation of paying for the care of an elderly relative. Lori Craig, a Milwaukee-based senior vice president and market executive at PNC Wealth Management, claims that the notion of a retiree spending a portion of their own retirement is a new one, and not a conversation that financial advisors would have had with clients a few years ago. Now, consultants like Craig are instructing families to save more than they think they need, and to begin saving early.
Caring for an aging parent is becoming a costly endeavor, and one that requires a great deal of attention as more stories emerge over nursing home abuse and neglect. Affording an assisted living facility may be one part of the equation for families like those in the PNC survey, but ensuring that the home is a safe and nurturing environment is another.
Pitman, Kalkhoff, Sicula & Dentice is Wisconsins largest nursing home abuse law firm. If you suspect abuse or neglect of your aging loved one, report it immediately and explore the nursing home abuse resources we have available to help you or call a nursing home abuse lawyer at our firm.