| When children grow up and move away from home, they tend to take a load off their parents’ shoulders in the form of reduced daily living expenses. Less mouths to feed and fewer people to look after means “empty nesters” will be left with some extra cash after their kids fly off, argues a new analysis from the Center for Retirement Research (CRR) at Boston College, but are they making the most out these earnings? According to CRR researchers, the short answer is “No.” Although a CRR study found that empty nesters do increase 401(k) contributions, these raises typically range from 0.3% to 0.7%, making them “extremely small” and unlikely to improve retirement readiness, depending on the data used to project expected contributions. What can plan sponsors do to help “empty nesters” redirect more into retirement savings?Read more > |
