Much of boomer wealth and retirement savings is being spread across multiple generations. Not only are boomers concerned with spending for themselves, most are helping with the financial demands of their children and parents.
New research from Ameriprise's report, "Money Across Generations" shows 50 percent of boomers use "day-to-day" spending to help their kids out; Forty-one percent are taking money out of savings. While most of the expenses come from college loans and car payments, 70 percent say they don't see how taking money out of regular expenses or savings would slow the rate at which they save for retirement.
Boomers aren't footing the bill just for their kids -- they are helping out their parents, mainly helping to pay for groceries, medical expenses and utility bills. According to the report, "Generosity toward family is only natural, and generosity is in boomers' natures. However, planning for this generosity is key. Opening the dialogue about money across generations will help boomers balance their generosity with their own retirement savings goals."
