Adult Children Worry About Boomer Parents’ Care

Find out why inflation has adult children worrying about their boomer parents’ elder care.

With many Americans already struggling as rising inflation rates continue to impact the cost of living, the “Sandwich Generation”, could be facing even more challenging days ahead.

 

Are You Part Of The Sandwich Generation?

If you’re a GenXer (1965-1980) or a millennial (1981-1996), chances are you belong to this group of adult children juggling both the responsibilities of raising children of your own AND serving as caregivers for your aging parent/s.

A recent survey by the American Advisors Group (AAG) finds that 55% of adult children say they are not financially prepared to help their Baby Boomer parents cope with rising inflation and living expenses.

“Americans want to see their parents age with grace and dignity and have the resources they need to live comfortably, but for many families the current economy is making that difficult,” AAG Chief of Marketing Martin Lenoir said in a news release.

AAG surveyed more than 1,500 adult children, ages 40 to 55, across the country. Among the survey’s other key findings are:

  • More than a thirdof adult children say they worry that their parents will become a financial burden for them.
  • Nearly 60 percentsay they cannot afford any kind of professional elder care for their parents.
  • Yet almost halfadmit they have never broached the subject of finances with their senior parents.
  • A full 50 percentof them do not know how much debt their parents are carrying.

 

Involvement Of Adult Children In Their Parent’s Health Care

Another survey, conducted in 2020 by GoHealth, Inc., explored GenXers’ and millennials’ involvement in their parents’ financial and health care needs. The 2,000 respondents reported the following:

  • One in three GenXers and millennials are supporting their parents financially.
  • Nearly the same number are managing, or helping to manage, their parents’ health care.
  • They spend an average of 5 hours per weekmanaging their parents’ health care – including providing transportation, scheduling doctor visits, and explaining insurance claims.
  • They also estimate they’ll spend 14 to 16 yearscontinuing to do so.
  • 2 in 5 spent more than $10,000of their own money supporting their parents in 2020.
  • The vast majority (86 percent of GenXers and 82 percent of millennials) worry about having enough money to support themselves and their parents.

 

Squeezing the Sandwich Generation

Adult children will continue to feel the pressure for the foreseeable future. GenXers and millennials who are saddled with college debt, as well as rising inflation and housing costs, may no longer be able to count on their parents for financial assistance or housing.

According to research by the Blackstone Group, an independent research firm, nearly 80 percent of middle-income Boomers do not have any savings designated to cover their retirement care.

Boomer Statistics You Need To Know:

  • Every day, on average, 10,000 Boomers (those born between 1946 and 1964) reach age 65, and another 10,000 of them turn 75.
  • 30 million Boomers retired from the workforce amid the COVID-19 pandemic.

 

Why Parents And Children Need To Have ‘The Talk’

It’s important for families to have an honest and respectful financial conversation before a medical event occurs or the need for care arises. Talking about money with aging parents can be a delicate matter, but it’s necessary to understand both the degree of care that may be needed and the financial resources available to provide it.

Putting a plan in place can help families be more prepared for life’s curve balls – job loss, medical emergencies, incapacity, unexpected passing, etc. – as well as receive benefits from federal programs like Medicare and Medicaid to help lessen the costs of healthcare and long-term care needs of elderly family members. 

Need help planning for the future of your Boomer parents, or for your GenXer and millennial children? Consult a trusted Estate Planning and Elder Law attorney in the DFW Metroplex. Schedule an appointment with the Law Office of Antoinette Bone today.

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