Adult Children Survey
Adult Children Survey
Current economic conditions have many American seniors struggling to afford their retirement years, and that stress is starting to affect the rest of their family. Factors such as inflation and a volatile stock market are disrupting how many older Americans are planning to fund their later years, and their adult children are now worried they will not be able to help. To learn exactly how adult children are feeling about their parents’ financial state, AAG, a national leader in retirement solutions, conducted the AAG Adult Children Survey with more than 1,500 adult children, aged 40-55 across the United States.
AAG ADULT CHILDREN SURVEY RESULTS: Inflation is a major concern for seniors and their children alike. Nearly two-thirds of adult children are concerned that inflation is hurting their parents’ financial situation.
RESULTS: 62% of adult children answered "YES" they are worried about the impact that inflation is having on their parents’ finances.
Families are worried about how the seniors in their family are going to afford their later years. Nearly half of adult children are concerned about their parents’ future financial situation.
RESULTS: 43% of adult children answered "YES" they are worried about their parents’ financial status.
Many Americans are afraid that their parents’ financial problems will spread over multiple generations. Over a third of adult children are worried their parents’ financial issues will eventually become their problem as well.
RESULTS: 35% of adult children answered "YES" they are worried their parents will become a financial burden to them at some point.
Financial troubles are causing families to rethink their housing plans for the senior members of their family. Half of adult children now believe their parents will need to move into their home at some point in the near future.
RESULTS: 50% of adult children answered "YES" they plan for their parents to move into their house in their later years.
Most adult children are financially unprepared to help their senior parents. Over half of adult children would not have the money to care for their senior parents if a situation required their help.
RESULTS: 55% of adult children said "NO" they are not financially prepared to care for their parents in a time of need.
Over half of adult children would also be unable to afford any type of professional elder care for their parents during their later years.
RESULTS: 59% of adult children answered "NO" they could not afford in-home nursing care or care at an assisted living facility for their parents.
Not only do adult children believe they will be unable to afford helping their parents, nearly half of adult children have never even discussed finances with their senior parents.
RESULTS: 44% of adult children answered "NO" the have never had a financial discussion with their parents regarding their home and other assets.
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Communication is not only an issue with families discussing financial planning, there is also a lack of transparency around how much seniors spend. Half of adult children do not know how much debt their parents have amassed.
RESULTS: 50% of adult children answered "NO" they are not aware of how much debt their parents currently have.
With traditional financial strategies leaving many seniors without enough money to fund their later years, over half of adult children believe that their parents’ home equity could be the solution.
RESULTS: 60% of adult children answered "YES" they are in favor of their parents using their home equity to fund their later years.
Adult children view their parents’ home equity as a financial option, over three-fourths say they have never discussed utilizing it with their parents to help fund their later years.
RESULTS: 76% of adult children answered "NO" they have never talked to their parents about utilizing home equity to fund their retirement or long-term care.
Not only do adult children see their parents’ home as a financial solution, they also view it as a long-term care option. Roughly three in four adult children said they would prefer to see their parents live their later years in the comfort of their own home.*
RESULTS: When asked to select between the two options or no preference, 74% of adult children said they would prefer to see their parents live their later years in their own home rather than at an assisted living facility.
*Reverse mortgage loan borrowers must maintain home as principal residence, pay all taxes, insurance, maintain the home, and comply with all other loan terms.
With traditional financial strategies leaving many seniors without enough money to fund their later years, over half of adult children believe that their parents’ home equity could be the solution.
RESULTS: 60% of adult children answered "YES" they are in favor of their parents using their home equity to fund their later years.
In fact, many adult children are now viewing their parents’ home primarily as a financial tool. Roughly half of adult children say their parents’ home now has more monetary value than sentimental value.
RESULTS: 49% of seniors answered “MONETARY,” when asked if their parents’ home had more sentimental or monetary value to them.
AAG’s Adult Children Survey was conducted on May 12, 2022, and included 1,510 participants. Responses included numerous formats, including yes-and-no answers, ranking preferences, and multiple-choice replies. The survey was conducted on a digital platform so that participants from all regions of the United States could answer from the safety of their homes. All participants were selected randomly with age and parental homeownership being the only qualifying factors.
American Advisors Group, NMLS ID: 9392, 18200 Von Karman Ave., Suite 300, Irvine, CA 92612
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