Retirement & Financial Planning Report

Saving enough for retirement to avoid having to ask family members for assistance is a top priority for many in their financial planning, while there is also a strong sense of responsibility to take in a parent if they need help due to a major health or financial issue, according to a study done by the MetLife Mature Market Institute.

"Respondents across all generations place a strong value on being financially independent in old age and "not being a burden on their children." At the same time, they universally feel a strong sense of responsibility to protect an elderly parent who is not as independent as they themselves strive to be," said the report, which was based on a survey that broke out findings according to three generations: baby boomers born between 1946 and 1964, generation X, born between 1965 and 1976, and generation Y, born between 1977 and 1990.

Other top priorities include making sure a spouse or child would have enough money if a financial provider dies unexpectedly and helping to pay for a child’s college education. Half felt that providing for college is a strong or absolute responsibility, and only a tenth felt that parents have no responsibility at all.

While perhaps naturally the oldest generation in the study, the baby boomers, feel more financially secure than the other two, the desire to provide for children "is universally felt across all generations"—four-fifths in total indicated a desire to giver more financially to the next generation.

However, there are limits to the sense of responsibility, especially after children are grown. "For most, family is only responsible for providing financial support to adult children in severe circumstances," the study added. For example, 71 percent said they felt only slight or no responsibility to help children financially if they get into debt due to overspending, and 76 percent felt that way regarding contributing to their down payment on a house.

In both cases, baby boomers felt less responsibility than did members of the other generations. That group also showed the least willingness to have a parent live with them due to financial or health problems, and the highest incidence of believing that enjoying their own retirement should take precedence over leaving an inheritance.

Further, the study found some disconnect between goals and behavior. For example, despite the desire to provide for a spouse and offspring after their own death, one-eighth of respondents have no life insurance, and half of those acknowledge that they should have such coverage.