Majority Of GenXers, Millennials Expect To Support Parents In Old Age: Survey
AgeUp, an innovative annuity product issued by Massachusetts Mutual Life Insurance Company (MassMutual), today unveiled new research on how millennials and Gen Xers approach financial planning for their parents' longevity.
Developed by Haven Life Insurance Agency, AgeUp is designed to provide the adult children of the Boomer generation with financial protection for their aging parents.
The online survey conducted in January 2020 assessed whether adult children are comfortable talking with loved ones about their retirement savings, and whether they expect to provide financial support for their parents once they reach their 90s.
The research found that while the majority of millennials and Gen Xers believe they will provide financial support for their parents in their old age, they don't want to ask them about it – and they're not currently factoring it into their own financial planning. Of note:
- 80% of millennials and Gen Xers surveyed agreed that parents and in-laws should be taken into account when thinking about their own long-term financial plans.
- 68% think they will provide financial contributions to their parents should they outlive their retirement savings.
- 67% said they anticipate that they'll make the majority of their parents' financial decisions if they reach their 90s.
- 47% said that it is either "very important" or "extremely important" to talk to their parents about their retirement savings.
However:
- Only 37% have already taken their parents and in-laws into account for their long-term financial plans.
- Respondents ranked talking about their parents' personal finances as one of the "most awkward" subjects, second only to sex.
- 71% said they know "little" or "nothing" about their parents' finances.
- 56% report either "never" speaking with their parents about their financial plans for retirement, or speak about it "rarely" (once per year).
This new research confirms that the country is facing a looming financial crisis. As the Baby Boomer generation grows older, the gap between their retirement savings and longevity will increase exponentially – and the financial burden is poised to fall squarely on the shoulders of their adult children. AgeUp is the only financial product on the market specifically designed to address how millennials and Gen Xers can support their aging parents once they reach their 90s, addressing the potential challenge of Baby Boomers depleting their savings before the end of their lifetime.
The AgeUp product is issued by MassMutual and was developed by MassMutual's in-house startup, Haven Life Insurance Agency, out of their newly formed Boston Studio. Later this year, AgeUp will expand its offering to allow Baby Boomers to purchase the product for themselves.
Survey Methodology: AgeUp conducted an online survey in January 2020 and polled approximately 1,500 men and women in the U.S. between the ages of 25-44.
About AgeUp
AgeUp is a new annuity product designed to help protect families from the financial risk of loved ones living into their 90s and beyond. AgeUp is sold by Haven Life Insurance Agency (Haven Life), which is backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual). AgeUp deferred income annuities are issued by MassMutual, a leading mutual life insurance company that is run for the benefit of its members and participating policy owners.
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