Are you on track to enjoy a comfortable retirement? Will you be able to retire at all? Approximately 66% of working households miss conservative retirement savings targets for their age and income, according to the National Institute on Retirement Security.
Some of the reasons so many Americans are missing the mark is because they’re helping family members, trying to keep up with the Joneses, or putting their trust (and money) in the hands of people who don’t have their best interests at heart. One retirement roadblock some pre-retirees fail to see is other people. Here are six types of people who will ruin your retirement if you don’t make careful financial decisions.
The boomerang kid
Once your child graduates from college and secures steady employment, he or she usually moves out and embarks on the exciting journey toward independence. Then, next thing you know, your child gets laid off and asks to move back home. If you’re in this situation, you have some company. A Pew Research Center study found the most common living arrangement for people ages 18 to 34 is living with their parents. Unfortunately, if you’re the parent of a boomerang kid, this living situation could put your retirement at risk.
Another study, by market research firm Hearts & Wallets, found people 65 years and older who are the parents of financially independent children are more than twice as likely to be retired than parents of the same age who provide financial support to their adult children. And this support tends to be quite hefty. Roughly 30% of parents spend up to $5,000 annually supporting an adult child, according to a Money magazine survey. This money typically goes toward costs, such as utilities, phone bills, and health insurance.