Baby boomers are putting their retirements at risk by spending too much on their adult children, according to a new study by Ameriprise Financial. The study looked at the various ways people age 47 to 64 are financially assisting aging parents, adult children, and saving for retirement -- and how it's hurting their savings goals: Only 24 percent of boomers said they are saving for retirement, compared to 44 percent in 2007.
"It’s really admirable to provide support to parents and adult children," said Suzanna de Baca, Vice President of Wealth Strategies at Ameriprise Financial. But post 50s need to consider a specific level of support and look at whether they are funding wants or needs. "Have an open conversations about what you really can do," she added. "Take parent-child relationship out of it. Address the needs versus wants, and the expectations in terms of amounts and timelines."
Ameriprise Financial conducted the survey questioning 1,006 baby boomers with $100,000 or more in investable assets, 300 of their adult children, and 300 of their parents.
More than half of respondents have adult children living at home without paying rent. Moreover, the sandwich generation is also supporting aging parents: More than half of boomers surveyed provide support. Check out the slideshow below for a look at how post 50s are supporting family financially.