Daughters of Boomers Giving More Financial Help to Parents

June  12, 2012, 11:51 am

Daughters of Boomers Giving More Financial Help to  Parents, Study Finds

By ANN  CARRNS

The number of women who say they provide financial  support to their baby-boomer parents is increasing, according to research  from Ameriprise Financial.

Two-thirds of boomers’ daughters say they are providing some sort of  financial support to their parents, up from 48 percent in 2007, when the initial “Money Across Generations” survey was done. (Baby boomers are Americans born  between 1946 and 1964.)

More daughters report helping to pay their parents’ utility bills, housing  costs or long-term care costs. In addition, more daughters report helping with  household tasks like cooking and cleaning, laundry and transportation. That sort  of help may not have a direct financial impact, the study notes, but could cut  into time that the daughters would otherwise have spent working.

Suzanna de Baca, vice president of wealth strategies at Ameriprise,  speculated that the increase may be because the disproportionate impact of the  recent recession on jobs traditionally held by men, resulting in “an increase in  the number of women who are sole breadwinners, or earning more than their  husbands or partners and taking on more of the financial burden.”

Another factor may be that the children of boomers — Generations X and Y — are saddled with college debt and a tough job market and are more likely to live  with their parents. So it may be that when they say they are helping to pay for  their parents’ mortgages or utilities, they are indeed doing so, but are also  benefiting from the situation too.

“All of the generations are helping each other,” she said.

Boomers’ daughters are also more likely than their sons to worry that their  parents won’t have enough money for a secure retirement (63 percent, compared  with 47 percent for sons).

A majority of boomers sons’ also report providing support to their parents,  but that proportion — 62 percent — is about the same as five years ago.

The national telephone survey was conducted for Ameriprise in November and  December by research firm GfK Roper. The survey included 1,006 affluent baby  boomers, 300 parents of baby boomers and 300 adult children of baby boomers. The  margin of sampling error is plus or minus three percentage points for boomers,  and six percentage points for their parents and children.

Meanwhile, three-fourths of female baby boomers say they’ve “adequately  discussed” their parents’ current financial situation, compared with 64 percent  of men. Women are also more likely to say they’ve talked to their parents about  how they’d pay for long-term care needs (62 percent for women, compared with 49  percent for men).

Ms. de Baca said that women are very aware of the likelihood that they’ll  outlive their spouses, so they may begin financial conversations because they  know they will live longer and may be alone and have to support themselves  financially.

Are you helping to support your boomer parents? Or, if you’re a boomer  yourself, have you discussed your own parents’ financial situation with  them?

 

DCSIMG

Daughters of Boomers Giving More Financial Help to Parents
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