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Video Report: New survey finds more Americans are sacrificing rheir retirement to help parents and adult children

February 2007 (Medialink) - Saving for retirement can be a huge challenge. Now, a new survey finds approximately 15 million working Americans aged 45 and over have taken on an unexpected financial burden by supporting their own parents and their adult children.

The survey, conducted by Putnam Investments, shows that one-in-five Americans in this group are spending an average of $240 per month to cover expenses for their parents. Meanwhile, approximately one-in-three are putting a roof over the heads of at least one child aged 25 or over. Eight percent are writing rent checks for their adult children, while 23% have taken them back into their homes.

Retirement expert William Connolly breaks down what Americans need to do now to help them save for their future. He states that although for the most part people are happy to extend their help, there is a cost to their own financial well-being - as more Americans admit they will save less for retirement, postpone retirement, or work in retirement as a result of their generosity.

Did you know?

  About 43% of both groups expect to work for pay during their retirement as a result of these unanticipated expenses. A smaller but still significant percentage will save less for their retirement or postpone it.

  57% are "very pleased" to be able to help their parents; and 38% feel the same way about their adult children.

  Those who have used a financial advisor are significantly more confident in having enough to retire.

William T. Connolly, retirement expert and chartered financial analyst

Connolly joined Putnam in 1999 and is currently the senior managing director, responsible for managing retail business - including mutual funds, separately managed accounts, insurance products, alternative investments, telemarketing and client-service organizations.

He is also responsible for all of Putnam's communications efforts. Connolly is a member of Putnam's Executive Board of Directors and Advisory Council. He has 17 years of industry experience and is a chartered financial analyst charter holder and a member of the Boston Security Analysts Society.