Savers Rethink Retirement Planning, Financially Supporting Family
More and more retirees are working to achieve two financial goals at the same time: saving for the long term and supporting family members financially at the same time. The move could put more financial pressure on them, according to new research from fintech provider IRALOGIX.
The Family Factor, a national survey of 1,108 American adults, shows that 88% of Americans believe that people feel at least some pressure to help their family financially, even if they cannot afford it. Another 81% said they would feel financially responsible for helping a family member who is experiencing financial upheaval.
This was especially true for adults between the ages of 45 and 60, who were more likely than any other group to feel a strong sense of financial responsibility for their loved ones. Although the IRALOGIX study did not specifically state the reason, the study notes that many savers in this group typically juggle competing financial priorities, including supporting grown children and aging parents, managing care and contributing to retirement.
However, the research shows that while many feel financial pressure to help loved ones, more than three-quarters of respondents admit they do want to help.
The research opens up a conversation about how retirement planning will evolve in the future as adults decide to tackle multiple financial priorities instead of just one. Rather than focusing solely on retirement planning, the industry will need to broaden the topic to include other financial and health factors.
“People don’t experience their financial lives in discrete categories,” said Peter J. de Silva, CEO of IRALOGIX. “Retirement planning doesn’t happen in one bucket and family responsibilities in another. For many Americans, these priorities unfold simultaneously. Understanding this reality can help us better understand retirement itself.
“The family factor is not exactly the story of family finances,” he added. “This is a story about how people make financial decisions when more than one important future depends on them.”
