Costs related to caring for aging parents may mean that many members of the “sandwich generation,” who also are taking care of their children, may not have enough funds for their own care when it comes time for retirement, suggests a new survey by T. Rowe Price.
The “2019 Parents, Kids & Money Survey” focused on how the finances of this generation affect children and their money habits but also provided insights into the financial impact of caregiving responsibilities.
Thirty-five percent of survey respondents said they currently are caring for at least one aging parent or other relative. More than one-third of them (34%) spend $1,000 to $2,999 per month to care for them, and an additional 23% spend $3,000 to $4,999 per month on care.
Seventy-seven percent of poll participants who are caregivers said they have used money from their retirement accounts within the past two years, compared with 23% of noncaregivers.
Nineteen percent of all participants said they had taken money from their retirement accounts in the past two years specifically for expenses related to caring for the parent or relative, and 14% said they had used money from their emergency funds in the past two years for such purposes.
The global investment management organization conducted the survey Jan. 17 to 23 among 1,005 U.S. parents of children aged 8 to 14. Five percent of respondents were aged 55 or more years, 30% were aged 45 to 54, 43% were aged 35 to 44, and 22% were aged fewer than 35 years.