News

Baby Boomers Who’ve Cut Apron Strings for Adult Kids Twice as Likely to Be Retired Than Ones Who Haven’t

Ability to Retire Influenced by Parental and Financial Support Status

(Rye, NY) – A new Baby Boomer study reveals parents with financially independent children who don’t support anyone else are more than twice as likely to be retired as parents who can’t cut the apron strings for adult kids – according to Hearts & Wallets, the preeminent financial research resource for understanding consumer savings and investing needs and behaviors.

Hearts & Wallets latest topic brief, Dissecting the Baby Boomers: How a Parental and Financial Support Status Segmentation Reveals Key Differences in Finances, Attitudes and Behaviors reveals the importance of segmentation to uncover the diverse financial goals and needs of this market for financial services products and advice. Parental support is a major factor in the ability to retire. Overall, 35 percent of Boomers are retired from full-time work. Only 21 percent of Boomers who support adult children are fully retired. More than 50 percent of Boomer households (52 percent) who have children, but don’t support them (or others, such as extended family) are retired.

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U.S. Savings Rate Jumps to 5.5%, One Fourth Save Nothing; Top 10 Statistics of U.S. Household Finance Throughout Life

Online Planning Tools Boost Savings, Especially for Lower Income

(Rye, NY) – The average household’s savings rate jumped to 5.5 percent in 2014, up from 4.6% percent in 2013, but the picture of household wealth isn’t all positive. One-fourth of all Americans saved nothing, and younger and less affluent consumers struggle with more non-mortgage debt, according to a new study of household finance throughout life by Hearts & Wallets, the preeminent financial research resource for understanding consumer savings and investing needs and behaviors. Read More→

Research Reveals Consumer Preference for “Chunk or Nothing” Retirement Spending Behavior, Despite Shroud of Shame

Opportunity to Offer New Financial Solutions for Joyful Last Chapter of Life

(Rye, NY) – Consumer behavior reveals a marked preference for “chunk or nothing” spending and savings behavior, yet older investors feel intense guilt breaking open the retirement nest egg, according to new research by Hearts & Wallets, the preeminent financial research resource for understanding consumer savings and investing needs and behaviors.

Conditioned to think in terms of steady income withdrawals by current product messaging, older people are caught between industry expectations and their own desires. The study, Optimizing the Last Chapter: What Pre-Retirees Want From Their Money & How “Chunk or Nothing” Behavior Affects Service & Product Design for Personal Investments, crystalizes the dilemma of many Americans who want to use their savings in chunks to do things they’ve always wanted while health permits, but feel ashamed in doing so.

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