October 13, 2015 1:10 am
Financial obligations in the present may put off retirement in the future. According to a recent report by the LIMRA Secure Retirement Institute, nearly one-third of Americans would be willing to reduce the amount they are saving for retirement, or even defer it, to help their children or grandchildren pay for college educations.
“Long ago, attending college morphed from a privilege into a necessity for so many,” says report author Michael Ericson, a LIMRA analyst. “With the average student loan approaching $30,000, people have been forced to shuffle around their financial priorities and obligations.
“In addition to eroding retirement confidence, these loans are causing Americans to reduce their discretionary spending,” Ericson adds.
But the report also confirmed what previous research has found: those saving for retirement are also more likely to save for other purposes, as well.
“Those saving in their 401(k)s are also putting money aside for college tuition. They’re doing what they can to prepare for both,” says Ericson.
Published with permission from RISMedia.