Those Caring for Both Parents and Children Put Off
Saving
April 7, 2008 (PLANSPONSOR.com) - Baby Boomers
around the globe are being squeezed financially by
simultaneously caring for their parents and their children,
according to research from The Hartford Financial Services
Group, Inc.
According to a press release, many survey
respondents indicated they are currently caring for both
children and parents or older relatives, more in South
Korea (49%) and Germany (40%), but also a significant
number in Japan (29%), the U.S. (28%), and the U.K.
(23%). Families in the U.S. (47%), Germany (43%), Japan
(43%), South Korea (35%), and the U.K. (33%) indicated
they made lifestyle changes - including cutting back on
dining out and entertainment, putting off vacations or
holidays, and reducing purchases - to deal with the
financial impact.
Burdens of caring for multiple generations prompted
some Boomers to put off saving for retirement or other
major financial goals (28% in the U.S., 22% in the U.K.,
18% in Japan, 17% in Korea, and 10% in Germany), the
survey found.
Many people age 45 and older in Japan (74%), the
United States (44%), South Korea (42%), Germany (38%) and
Britain (32%) indicated they have concerns about dealing
with intergenerational financial obligations. Meeting
day-to-day expenses while caring for multiple generations
was also a real concern for many - 35% in the U.S., 26%
in the U.K., 22% in Japan, 17% in Germany, and 14% in
South Korea.
The announcement also said the research indicated
those with multi-generational financial obligations are
less confident than their peers that all of their sources
of income will be sufficient to continue their lifestyles
in retirement. They also seem less optimistic, saying
they expect to work longer and for their retirement to be
less leisurely than their contemporaries.
The study was conducted by independent research
agency Opinauri, and polled 3,750 consumers aged 45 and
older in the U.K., U.S., Germany, Japan, and South
Korea.
Rebecca Moore
editors@plansponsor.com