Got Questions? Just Ask Freeman.
Ask Freeman.
Call Toll Free:
(866) 471 7233

Freeman's Blog


empty nest - more money for retirement

About three in 10 Americans aged 25 to 34 live with their parents

The 2006 film Failure to Launch told a humorous story of an adult son who couldn’t seem to leave his parents’ home. Although the plot was fictional, this scenario has become more common in real life — about three in 10 Americans aged 25 to 34 either live with their parents or have done so in recent years.¹ This trend is largely due to the job market, which has been especially tough on young workers. In mid-2012, the unemployment rate for young people aged 18 to 29 was 12%, about 50% higher than the national average.²

Smaller Household= Bigger Bank Account

After years of holding off on spending, some empty-nesters may splurge on themselves. One study found that parents whose children left home increased their per-person consumption of non-durable goods such as vacations, restaurant dinners, and leisure activities by 51% compared with people who never had children.³

There’s nothing wrong with treating yourself, but increasing your consumer spending later in life could create lifestyle expectations that may be too expensive to maintain in retirement. It might be wise to dedicate at least some of the extra income to your retirement nest egg. You may be surprised by how much of a difference late-career contributions could make.

Sources:
1 & 3) CNNMoney, October 10, 2012
2) Forbes.com, July 26, 2012

retirement take controlMy motto for a better retirement plan is “Keep Your Money Safe”. My consultation is always free. Call me today so we can discuss your retirement strategy options. Toll Free: 1-866-471-7233