Will You Rely On Your Adult Kids To Supplement Your Retirement?
According to the Insured Retirement Institute’s latest report on the Baby Boomer generation, 45% of Baby Boomers have no retirement savings, and a staggering 59% of this generation expected the majority of their retirement income to come from Social Security.
For those whose expenses are not covered by social security, pensions, savings, and more, the burden falls to their adult children. However, the reality is that many mid-life children are not in a position to support their parents and their own kids.
Nearly one-third of midlife adults with at least one living parent (32%) are providing financial support to them
Four in ten (42%) expect to be providing financial assistance to their parents in the future
Over half of midlife adults (54%) provide $1,000+ for monthly expenses such as primarily food, housing and medical care
More than a quarter (28%) of those who provide financial support to their parents consider it a high financial strain on their own family.
Nearly half (47%) are concerned about being able to provide financial support to their parents in the future
In addition to monthly expenses, there are also the larger unexpected expenses that can come up such as major house repairs or medical care.
What does an adult child do if mom and dad need a new air conditioning system or a new roof costing thousands of dollars?
That Adult Child Was Me
Early in my young adult life, I found myself in this exact situation. My parents had worked hard to provide a beautiful life for our family but a failed business driven by a failing economy took them down a different path. This situation changed their lives and their ability to generate extra income and save for their future. As a result my parents had no long-term financial plan for retirement.
I love my parents and given all that they have done for me throughout my life, I was more than happy to help them financially, providing vacations, a car, furniture and eventually help paying their mortgage. However, over time my circumstances eventually changed dramatically, thereby impacting my ability to afford to help.
After my divorce, times were tough and the ability to help on a monthly basis was difficult. I also knew this would not be sustainable - but I didn't see any way out. When I learned about the idea of a reverse mortgage it sounded too good to be true!
I reached out to Live Better Financial and they took my parents through the reverse mortgage process, and, as you can guess, it has totally changed their lives. Today, my parents are both retired and they have no mortgage payment. They also have a very nice sum in their bank account that they were able to pull from the reverse line-of-credit.
This chunk of money has allowed them to not only live and afford their life from day to day, but also to afford to purchase a new roof, a new heating and air-conditioning unit, and get new windows for their home. They now have the security to know that if something hits, they are prepared for it. And they can enjoy doing special things that they were not able to do before. Why am I telling you this? Because I saw first-hand what a reverse mortgage did for my parents, and for me.
I don't know what we would have done if my parents hadn’t gotten a reverse mortgage. It would have been up to me to make their house payments so they could stay in their home, but I wouldn’t have been able to afford it.
Christine M.
Perhaps a reverse mortgage isn't for everyone. But for seniors who own their home, either outright or with a mortgage but lack the monthly cash-flow to afford their retirement, a reverse mortgage can be a very good solution. In truth, it can be a lifesaver for everyone involved.
Can You Relate?
If you have been wondering about a reverse mortgage but are unsure where to go to get all of the information you need with zero-pressure, I encourage you to connect with the Live Better team. They answered all of our questions so we could determine if a reverse mortgage was the right solution. They did this for me and my parents and they will be happy to do this for you as well.
To learn more or set up a free consultation, visit www.livebetterfinancial.com.