Eugene Vickerson, residing in Atlanta, Georgia, once held two jobs simultaneously to achieve financial stability for his retirement. However, his plans for a comfortable old age and a dream European trip never materialized. When he was 62, his daughter divorced, bringing her young child to live with him. "I used all my savings to buy a bed and diapers for my grandchild", he stated. Instead of resting, Eugene returned to the daily grind of earning a living.
An increasing number of elderly Americans face similar circumstances. A recent survey by The Senior List reveals that US grandparents currently spend an average of nearly USD 4,000 each year on their grandchildren. This figure is almost double the USD 2,500 reported in 2019 by the American Association of Retired Persons (AARP).
About 10% of surveyed seniors reported postponing retirement or taking on debt to support the younger generation financially. The main causes include the continuously rising housing prices, education costs, and living expenses in the US, which often exceed the affordability of many young couples. Furthermore, 25% of grandparents admitted experiencing significant pressure and feeling compelled to spend more frugally to care for their grandchildren.
Beyond financial contributions, 94% of grandparents also provide non-financial support. This includes childcare, school transportation, and tutoring, which helps lighten the burden on the parents.
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Mercedes Bristol with her grandchildren in San Antonio, US. *Photo: AARP* |
Mercedes Bristol, a Texas state government employee, found herself in a similar predicament with just a few years left until retirement. Due to her children's difficulties, she had to take in five grandchildren, the oldest of whom was just 9 years old. "I didn't even have enough beds for the five children", Mercedes recalled, tearing up in a Walmart supermarket, overwhelmed by the amount of supplies needed. All her retirement savings vanished to provide food and clothing for her grandchildren. More than a decade later, three grandchildren, now 13, 15, and 19 years old respectively, are still living with her.
Despite the substantial financial burden, 63% of surveyed grandparents affirmed that their grandchildren's safety was worth any sacrifice.
Financial experts recommend that, amidst inflation, families need transparent financial planning across generations. "Grandparental support should not be an assumption but rather considered based on actual capability, to prevent seniors from falling into poverty in their final years", The Senior List report emphasized.
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