Allianz LoveFamilyMoney Study Finds Children are Source of
Financial Stress and Motivation
This response comes despite the fact that these single parents indicate they are on a relatively stable financial footing and exhibit strong confidence in their financial planning skills. Single-parent family respondents in the study had an average annual household income of nearly
Yet, balancing retirement savings and college funding continues to be a complex issue for this group. Although more single parents identify themselves as savers (62%) than spenders (38%), more than three-quarters (76%) say they are worried about running out of money in retirement compared with only 70% of traditional families. And less than half of single parents (45%) indicate they know exactly what steps to take to ensure they have a comfortable retirement. This compares with nearly six in 10 (57%) of traditional family respondents who believe they understand the steps necessary to ensure a comfortable retirement.
“Single parents are forced to solve the retirement equation by themselves, which places tremendous pressure on their ability to find the right balance between saving for their children’s college expenses and saving for their own future,” said Allianz Life Vice President of Consumer Insights
Although single parent respondents seem willing to prioritize their children ahead of themselves, they also recognize that this can have negative repercussions. More single parents (37%) agree that they are putting their financial future at risk to take care of their children than other modern families (32%). As a result, nearly half (49%) of all single parents say they cannot possibly save enough for retirement.
Despite this, single parents remain dedicated to assisting their children either through college funding or getting them started financially. Forty-five percent of single-parent families said it is a parent’s responsibility to help adult children get started financially, versus 37% of other modern families.
“While single parents have several options to help pay college expenses – including grants, scholarships, and student loans – they’re solely responsible for their own retirement savings,” added Libbe. “Depleting their nest egg to fund education costs can be dangerous. To avoid sacrificing retirement savings, a good plan may be to explore college saving and borrowing options first, then determine how those tactics fit with their larger savings strategy.”
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*The Allianz LoveFamilyMoney Study was conducted by
**In the LoveFamilyMoneystudy, Allianz identified seven distinct family structures, or cohorts, one being the traditional family – those married to someone of the opposite sex with at least one child under 21 living at home, who do not fall under one of the modern family cohorts below. The study also looked at six other modern family cohorts: