Over 60% of adult children say inflation is hurting their senior parents, according to AAG Survey
AAG's National Adult Children Survey Shows Concerns Over Senior Parents' Finances
IRVINE, Calif., July 20, 2022 /PRNewswire/ -- Current economic conditions have many seniors struggling to afford their later years, and new data from American Advisors Group (AAG) shows that their hardship is causing stress among their older aged children. To learn exactly how American adult children are feeling about their parents' financial state, AAG, a national leader in home equity solutions for seniors, conducted the Adult Children Survey with over 1,500 participants ages 40-55 who have senior parents.
"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," said AAG Chief Marketing Officer Martin Lenoir. "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."
The Data Shows Adult Children Are Worried About their Senior Parents Financially:
The majority of 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.
Half of adult children believe their parents will need to move into their home at some point. 50% of adult children say they plan for their parents to move into their house in their later years.
Over a third of adult children are worried their parents' financial issues will fall on them. 35% of adult children say they are worried their parents will become a financial burden to them at some point.
Nearly half of adult children are already concerned about their parents' financial situation. 43% of adult children said they are worried about their parents' financial status.
Half of adult children do not know how much debt their parents have amassed. 50% of adult children said they are not aware of how much debt their parents currently have.
Most adult children believe that their parents' home equity could be a financial solution. 60% of adult children said they are in favor of their parents using their home equity to fund their later years.
Over three-fourths of parents have never spoken to their children about using their home equity. 76% of adult children said they have never discussed utilizing their home equity to fund their retirement years.
While Americans search for ways to increase their cash flow, senior housing wealth reached a historic high at a record $10 trillion, according to the National Reverse Mortgage Lenders Association. Through a federally insured Home Equity Conversion Mortgage (HECM) loan, more commonly known as a reverse mortgage, seniors aged 62 and older can access their home equity, eliminate their monthly mortgage payments, and remain in their home long term. Seniors who use a reverse mortgage loan to remain in their home long term are required to continue paying their taxes and insurance, maintain the home, and comply with all terms of the loan.
AAG's Adult Children Survey was conducted on May 12, 2022, and included 1,510 participants. Responses include numerous formats, including yes-and-no answers, ranking preferences, and multiple-choice replies. The survey was conducted on a digital platform so participants from all regions of the United States could answer from the safety of their homes. All participants were selected randomly with age and parental homeownership being the only qualifying factors.
About AAG AAG is dedicated to helping older Americans find new ways to fund a better retirement through the responsible use of home equity. As the nation's leader in reverse mortgage lending, AAG offers a suite of home equity solutions — including Home Equity Conversion Mortgages, traditional and proprietary mortgages, that are designed to give seniors a better financial outcome in retirement. AAG is a proud member of the National Reverse Mortgage Lenders Association (NRMLA). To learn more about AAG and reverse mortgage loans, please visit the company's website at www.aag.com.
American Advisors Group, NMLS ID: 9392, 18200 Von Karman Ave., Suite 300, Irvine, CA 92612.