The ongoing economic tool of inflation is having visible financial consequences for both Baby Boomer seniors and their Generation X children, as a new study by American Advisors Group (AAG) has revealed that over half of Gen X respondents report they will be financially unable to adequately care for their Baby Boomer parents.
AAG conducted the “Adult Children Survey” with over 1,500 participants between the ages of 40 and 55 who report having senior parents, finding that monetary anxiety regarding care for older parents weighs on the minds of Gen X children.
“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,” said AAG Chief Marketing Officer Martin Lenoir in a statement accompanying the data. “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.”
This can relate to the employment of home equity by the necessity some Gen X children feel to find alternative ways to solve a financial issue, including care for parents, Lenoir said.
“Children of seniors are now searching for financial solutions to help fund their parents’ later years and our data shows that the majority are now in favor of utilizing their parents’ home equity,” he said.
55% of Gen X respondents report not having enough money to be able to provide an adequate level of care for their aging parents, according to the results. Additionally, 62% of adult children report that current inflation levels are actively harming the financial well-being of their parents.
Over a third of Gen X respondents — 35% — report concern that the financial condition of their parents will in some way fall to them to have to handle, while 59% of Gen X respondents report that they are unable to afford costly forms of care including in-home nursing or a move to an assisted living facility.
50% of adult children in the U.S. also report having very little or no idea of the amount of debt their parents have amassed, while 60% of Gen X respondents report at least some amenability to the idea of looking toward home equity as a potential solution to some or all of these problems, and are in favor of their parents using their home equity to fund later-life care.
Read the full results of the survey at AAG.