- Some of them are likely low-income earners that simply will not have enough personal savings to supplement Social Security benefits for the rest of their lives.
- Some of them are high-income earners who have spent most of their money on current consumption and will have little savings at retirement.
- Some of them have very unrealistic expectations about retirement.
Let’s assume that the majority are not prepared for retirement through no fault of their own. However, consider some additional findings from the study. Globally,
- 18 percent of retirees “expect to have to support elderly parents.”
- 35 percent of retirees “expect to be continuing to support their own children.”
As I read further I found that of current retirees whose income is less than they expected, 21 percent stated that they are still supporting children financially.
Okay, I certainly understand the need to support elderly parents. But can we safely assume that most of these children are of legal and working age (and they are not grandchildren, since the survey question specifies “their own children.”) If so, why are older generations supporting younger adult generations? Perhaps it’s the economic outlook for today’s young people, the student loan debts they’re carrying, or the belief of parents that their children should have more than they did, but what will this reversal of generations gain society? Certainly no financial security for retirees and no perseverance and wisdom for their children.