Millennials are in a conundrum.
While a quarter of Millennials think they never would be able or plan to retire due to not enough time to save and prepare, while mounting student debt and the inability to save are drivers for this mindset, most think they will have to support their parents in the future as well, according to a new study.
A survey conducted by the financial protection app AgeUp found that 64% of Millennials and Gen Xers expect to financially support their parents or in-laws in their old age. The study, which used information from the US Census Bureau and the Social Security Administration, determined that 35% of respondents think their parents will run out of money by age 90, which would be where they would need to step in and provide financial support.
“More and more people are living into their 90s and beyond and there hasn’t been a financial product specifically designed to address the problem of adult children supporting their aging parents until now,” Blair Baldwin, General Manager for the AgeUp product said in a news release. “We set out to create a solution to help everyday Americans address this growing need, and found we could achieve this goal by creating a new kind of deferred income annuity we call AgeUp.”
The average life expectancy has risen in recent years. A baby born in 2016 can be expected to live to 78.6 years, which is about seven years more than a baby born in 1980, according to USA Today.
Those living in Hawaii, California, and Minnesota also had the highest life expectancy at birth in 2015, according to the study.