Three in Four Generation X Adult Children Want Their Parents to Retire in the Comfort of Their Own Home *
*Reverse mortgage borrowers must continue to pay taxes, insurance, maintain the home and otherwise comply with loan terms.
AAG's Adult Children Survey Shows Generation X Adult Children are Not Emotionally or Financially Prepared to Care for Their Parents in Later Years.
IRVINE, Calif., Oct. 14, 2022 /PRNewswire/ -- Inflation and current economic conditions are creating problems for senior Baby Boomers, and new data from American Advisors Group (AAG) show that many of their Generation X (Gen X) children are not emotionally or financially prepared to care for them in their later years. To learn exactly how Gen X adult children are feeling, 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.
"The retirement savings crisis is real, and many Gen X adult children are telling us that caring for their parents will be extremely difficult and potentially unattainable." said Eddie Herda AAG VP of Brand Strategy. "There is interest in finding financial solutions to help fund their parents' later years and our data show that the majority are now in favor of utilizing their parents' home equity."
The data show that Gen X adult children are not emotionally or financially prepared to care for their parents:
- Roughly three in four adult children want their parents to age in the comfort of their own home. 74% of Gen X adult children said they would prefer to see their parents live their later years in their own home rather than at an assisted living facility. *
*Reverse mortgage borrowers must continue to pay taxes, insurance, maintain the home and otherwise comply with loan terms.
- Over half of Gen X adult children in the US would not have the money to care for their senior parents if a situation required their help. 55% of adult children said they are not financially prepared to care for their parents in a time of need.
- 44% of adult children are not emotionally prepared to care for their parents during their later years.
- Half of Gen X adult children in the U.S. 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.
- Over half of Gen X 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 Gen X children about using their home equity to fund retirement. 76% of adult children said they have never discussed, with their parents, utilizing home equity to fund their retirement years.
To read the full results of AAG's Adult Children Survey, visit this link: http://view.ceros.com/aag/adult-children-survey
While Americans search for ways to increase their cash flow, senior housing wealth reached a historic high at a record $11 trillion, according to the National Reverse Mortgage Lenders Association. (Source: https://www.nrmlaonline.org/about/press-releases/senior-home-equity-exceeds-record-11-12-trillion) 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 as their primary residence, 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.
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# 9392 (www.nmlsconsumeraccess.org). American Advisors Group (AAG) is headquartered at 18200 Von Karman Ave., Suite 300, Irvine, CA 92612. For complete disclosure information, visit https://www.aag.com/legal-information/. These materials are not from HUD or FHA and were not approved by HUD or a government agency.
Contact:
Cindy Hearn
[email protected]
(949) 466-6302
SOURCE American Advisors Group (AAG)
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