A clear majority of adult children — 62% — report feeling concerned about their parents’ financial situation in light of current economic realities, including high levels of inflation and increased living costs. This is according to the “adult children survey on retirement” released this week by leading reverse mortgage lender American Advisors Group (AAG).
“Inflation is a major concern for seniors and their children alike,” the survey results read. “Nearly two-thirds of adult children are concerned that inflation is hurting their parents’ financial situation. Families are [also] worried about how the seniors in their [families] are going to afford their later years. Nearly half of adult children are concerned about their parents’ future financial situation.”
50% of respondents also say that they expect their parents to need to move in with them in their later years, and 35% of respondents report concern that their parents’ financial issues will fall on them in some form or fashion.
When asked about what some of the most actionable insights are arising from the survey, an AAG spokesperson told RMD that home equity tapping presents a potential solution to some of the expressed concerns.
“This survey unveiled a lot of information that might challenge common perceptions of American families,” a company spokesperson said. “It is apparent that many adult children are concerned about their senior parents’ finances and are unable to help them financially. Now the majority of them feel that accessing home equity could be a solution to those hardships.”
Still, the information should also help solidify for the reverse mortgage industry broadly how reverse mortgage solutions can serve as a particular point of consideration under current economic conditions, the spokesperson said.
“This data shows why it’s important for our industry to focus on providing education around our products, not only with the seniors we serve, but with their families as well,” they explained. “Americans are searching for financial solutions to help the seniors in their lives and our products can be a solution.”
AAG chief marketing officer Martin Lenoir echoed these sentiments, explaining that receptivity to home equity tapping is rising.
“Older Americans are feeling the effects of inflation, and their children are worried that their parents aren’t going to have enough money to sustain their retirement years,” Lenoir said. “With the current economic environment, it’s no surprise that the majority of adult children are now in favor of their parents tapping into their home equity. For many seniors, their home is their most valuable asset and now may be the time to start utilizing it.”
Read the survey results.