The financial options for Gen Xers who want to help their parents as they grow older appear to be limited. More than half of Gen X adults don’t have enough money to help their aging parents, according to a study. The study also found that 55% of adult children said they were not prepared to financially look after their parents during a difficult time.
Read more: Seniors refuse to use mortgage loans
“We like to think our parents know all the answers, especially when it comes to their finances,” said Edward Herda, AAG’s vice president of brand strategy and creative marketing. Mortgage Professional America. “However, times are changing and for many seniors, their equity has become their greatest asset. Therefore, educating seniors and their families about the benefits of using their savings and the different ways it can be used is essential. A challenge that still needs to be overcome is a general lack of understanding of how the product works and how it can be used to finance things like long-term care, medical bills, home repairs and more. We even have clients who have used reverse mortgages to purchase homes that better suit their lifestyle.”
The AAG study also found that the majority of Gen X adults are concerned that inflation is hurting their parents, with 62% of adults saying they are concerned about the impact of inflation on their parents’ finances. Moreover, more than a third of Gen X adults worry that their parents’ financial problems will fall on them, and 35% of Gen X adults say they worry that their parents will become a financial burden on them at some point.
Such concerns are often existential, with more than half of Gen X adults unable to afford any aged care for their parents, according to the findings. And 59% of adult children could not afford their parents care at home or in a boarding school.