High inflation and fluctuating stock are causing havoc for the majority of Gen X children who can’t afford to help their aging parents.
Bizjournals reports a survey by the American Advisors Group found that 55 percent of adults aged 40-55 couldn’t afford to help their parents. Another 62 percent are worried about inflation’s impact on their parents’ finances.
Martin Lenoir, chief marketing officer for AAG, said: “Americans want to see their parents age with grace and have the resources they need to live comfortably, but for many families, the current economy is making that difficult.
In the US, with inflation driving up living expenses, an unplanned medical event can create hardship for families who can’t afford elder-care solutions such as an in-home caregiver.
The survey found:
- Over half of Gen X adult children do not have enough money to help their senior parents. 55 percent of adult children said they are not financially prepared to care for their parents in a time of need.
- The majority of Gen X adult children are worried inflation is hurting their parents’ situation. 62 percent of adult children say they are worried about the impact that inflation is having on their parents’ finances.
- Over a third of Gen X adult children are worried their parents’ financial issues will fall on them. 35 percent of adult children say they are worried their parents will become a financial burden to them at some point.
- Over half of Gen X adult children are not able to afford any type of elder care for their parents. 59 percent of adult children could not afford in-home nursing care or care at an assisted living facility for their parents.
- Half of Gen X adult children in the U.S. do not know how much debt their parents have amassed. 50 percent of adult children said they are not aware of how much debt their parents currently have.
- Most Gen X adult children believe that their parents’ home equity could be a financial solution. 60 percent of adult children said they are in favor of their parents using their home equity to fund their later years.
- Over three-fourths of parents have never spoken to their Gen X children about using their home equity. 76 percent of adult children said they have never discussed utilizing their home equity to fund their retirement years.
Women give the most care
The data gathered in the survey shows women give the most care to their parents and family members.
These roles include care manager, friend, hands-on health provider, companion, primary decision maker, and supporter.
The value of care for women is $148 billion to $188 billion yearly.
AgingCare, an online caregiver forum, says that most informal caregivers are not only unpaid women, but women are more frequently the primary caregiver, indicating they’re the sole caregiver or provide the bulk of caregiving.
The caregiving role significantly impacts Gen X daughters, who work full time and have their own children to worry about.
It is very expensive to look after an elderly relative, which adds pressure to the families of elderly people.
On top of that, these women are under immense emotional and financial pressure if you add in the high costs of looking after an elderly relative.
A survey by The American Advisors Group found that 35 percent of Gen X adult children are concerned their parents will become a financial burden, and 59 percent said they couldn’t afford in-home nursing care or a care home for their parents.
According to AgingCare, six in 10 caregivers are employed while caring for someone.
Most working caregivers say they must make sacrifices like working fewer hours, turning down job offers, and taking time off.
According to their report, “balancing work, family life, self-care and caregiving is a challenge. In many cases, something must give, and family caregivers often choose to put their professional aspirations on hold by quitting or retiring early. This decision can financially hamstring the entire family.”