TD Ameritrade Survey: Parents and Grandparents Forgo Frills to Save for Retirement and Raise Kids
February 21 2017 - 8:30AM
Business Wire
The results are in. Moms and dads really can’t have it all – or
at least they can’t without some form of compromise. So say the
2,000 parents who took part in the TD Ameritrade Parents and
Grandparents Retirement Survey, which examines the financial habits
and attitudes of millennial parents and boomer grandparents.
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Parents and Grandparents Retirement
Survey infographic (Graphic: TD Ameritrade).
While their parenting philosophies may be worlds apart, on this
much the generations agree: parents of all ages are willing to make
significant personal trade-offs in order to support their growing
families without losing sight of their long-term financial
goals.
However, parents of both generations agree that such trade-offs
should not come at the expense of loved ones. While 54 percent of
grandparents find the combination of saving for retirement and
supporting adult children “very stressful,” they and their
millennial parent counterparts agree that family still comes
first.
Trade-offs that are non-starters include:
- Spending less on children: just
20 percent of grandparents and 12 percent of millennial parents
would be willing to spend less money on their children
- Having fewer kids: 15 percent of
millennials would be willing to have fewer children
- Supporting aging parents: 5
percent of millennial parents and 2 percent of grandparents would
cut back on financial support to aging parents
More preferable trade-offs include lifestyle changes, like:
- Simpler living: half of
millennial parents (49 percent) and boomer grandparents (54
percent) would be willing to live a simpler lifestyle to help
retirement savings last longer
- Less “going out”: nearly half
would cut back on eating out and entertainment (46 percent
millennial parents and 49 percent grandparents)
- Buy second-hand: 39 percent of
millennial parents and 45 percent of grandparents would buy a used
car
- Delay retirement: about a third
would retire at a later age (36 percent of millennial parents and
32 percent grandparents)
- Travel less: nearly a third (29
percent) of both generations would cut back on vacations
- Downsize: about a quarter would
live in a smaller home (27 percent millennial parents and 25
percent grandparents)
“It’s encouraging to see that both generations of parents
recognize there are trade-offs and are willing to make them in
order to keep their retirement plan on track,” said Matthew
Sadowsky, director of retirement at TD Ameritrade. “But it can be
easier said than done and to put this into practice, parents should
take a hard look at what they’re truly comfortable scaling back on,
if need be.”
These trade-offs appear to be working. Most parents and
grandparents have never had to withdraw money from their retirement
accounts to support their families (60 percent of millennial
parents, 52 percent of grandparents). However, there is still a
sizable segment of the population (40 percent of millennial
parents, 48 percent of grandparents) that has – proof that even the
best laid plans can go awry. Expenditures in these cases
included:
- Emergencies (20 percent millennial
parents, 24 percent grandparents)
- Household bills (16 percent, 17
percent)
- Medical expenses (13 percent, 11
percent)
- Vacations (10 percent, 4 percent)
“Tapping into retirement accounts early can put your retirement
at risk, and for those parents serving as the ‘family bank,’ this
could negatively impact the whole family,” Sadowsky said.
“Retirement savers are able to stay the course and stay disciplined
by taking a few fundamental steps, including: setting aside an
emergency fund so they don’t need to tap into their retirement nest
egg to cover unexpected expenses, and developing a clear financial
plan that can help protect and potentially grow their nest egg.
People with a financial plan are three times as likely to be
confident they will reach their retirement goals.”
About TD Ameritrade Holding CorporationMillions of
investors and independent registered investment advisors (RIAs)
have turned to TD Ameritrade’s (Nasdaq: AMTD) technology, people
and education to help make investing and trading easier to
understand and do. Online or over the phone. In a branch or with an
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has time and again been recognized as a leader in investment
services. Please visit TD Ameritrade's newsroom or
www.amtd.com for more information, or read our stories at Fresh
Accounts.
Brokerage services provided by TD Ameritrade, Inc., member
FINRA (www.FINRA.org)/SIPC (www.SIPC.org).
Survey conducted by Head Solutions GroupHead Solutions
Group (U.S.) Inc., is a leading market research partner for
Financial Services companies in North America. With offices in New
York, Toronto and Montreal, Head delivers the deep customer
insights that increase institutional knowledge and propel business
action. TD Ameritrade and Head Solutions Group are separate and
unaffiliated firms and are not responsible for each other’s
services or policies.
About the 2016 Parents and Grandparents Retirement
SurveyA 18-minute online survey was conducted with 2,018
American adults (half millennial parents age 19-37, half
grandparents age 50-70 with adult children) by Head Solutions
Group, between Oct. 20 and Oct. 26, 2016, on behalf of TD
Ameritrade Holding Corporation. The statistical margin of error for
the total sample of N=2,018 American adults within the target group
is +/- 2.1 percent. This means that in 19 out of 20 cases, survey
results will differ by no more than 2.1 percentage points in either
direction from what would have been obtained by the opinions of all
target group members in the United States. Sample was drawn from
major regions in proportion to the U.S. Census.
Source: TD Ameritrade Holding Corporation
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TD Ameritrade Holding CorporationFor Media:Rebecca Niiya,
402-574-6652Sr. Manager, Corporate
Communicationsrebecca.niiya@tdameritrade.com@TDAmeritradePRorFor
Investors:Jeff Goeser, 402-597-8464Director, Investor
RelationsJeffrey.Goeser@tdameritrade.com
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