The financial wherewithal for Gen Xers intent on helping their parents as they age appears limited. According to the study, more than half of Gen X adult children do not have enough money to help their senior parents. The study also found that 55% of adult children said they are not financially prepared to care for their parents in a time of need.
Read more: Seniors balk at using home equity loans
“We like to think of our parents as having all answers, especially with their finances,” Edward Herda, AAG vice president of brand strategy and creative marketing, told Mortgage Professional America. “However, times are changing, and for many seniors their home equity has become their greatest asset. So, educating seniors and their families on the benefits of tapping that built-up equity, and the various ways it can be used, is critical. An issue to still overcome is the general lack of understanding of how the product works and how it can be used to fund things like long-term care, medical bills, home renovations and so much more. We even have customers who have used reverse mortgages to purchase homes that better suit their lifestyles.”
The AAG study also found the majority of Gen X adult children are concerned that inflation is hurting their parents’ situation – 62% of adult children say they are worried about the impact that inflation is having on their parents’ finances. Moreover, more than a third of Gen X adult children are worried their parents’ financial issues will fall on them, and 35% of adult children say they are worried their parents will become a financial burden to them at some point.
Such worries are often existential: More than half of Gen X adult children are not able to afford any type of elder care for their parents, according to the findings. And 59% of adult children could not afford in-home nursing care, or care at an assisted living facility, for their parents.
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