One of the biggest threats to your retirement is your kids, and it’s not just about the high cost of college. Parents have long tried to set up their children for success, but today that assistance is costing ever more, and lasting far longer, Barron reports.
Parental help often starts small, covering expenses such as cell phone bills, car payments, groceries or health insurance. But temporary assistance can quickly turn permanent and pricey, financing rent and down payments, grandchildren’s private K-12 and college educations, and support for offspring going through divorce or battling drug addiction.
Nearly 80% of parents give some financial support to their adult children—to the tune of $500 billion a year, according to estimates by consulting firm Age Wave. That’s twice what parents put into retirement accounts, according to a 2018 survey from Bank of America Merrill Lynch and Age Wave, which said almost three-quarters of respondents acknowledged putting their children’s interests ahead of their own retirement needs.