Those without kids less confident about retirement savings, but why?
Among parents who say they are not saving as much for retirement as they would like, 29% cite education costs and 27% point to childcare expenses. Credit card debt (40%) and car loan debt (25%) also rank as significant barriers at higher rates than among childless Americans.
“With the help of a financial professional, you can create a strategy that supports your kids and your long-term finances, so you’re not sacrificing your future to invest in theirs,” LaVigne said.
Children factor into retirement decisions
The study also found that for many Americans, family planning and retirement strategy are intertwined.
Nearly half (48%) said they considered (or would consider) the potential challenges to retirement savings as a significant factor when deciding whether or not to have children. Millennials (64%) were far more likely to weigh this than Gen Xers (41%) or baby boomers (18%).
“Becoming a parent is a deeply personal decision and everyone has their own unique set of circumstances. Finances are one of them,” LaVigne said. “Regardless of whether you have kids or not, writing down a financial strategy is one of the most powerful things you can do for your future security. And it’s a variable you can control.”
