MINNEAPOLIS, MN, Feb. 5, 2019 /PRNewswire/ - As the population
ages, the responsibility of caring for aging relatives is falling
largely to next of kin. In fact, one in five (19%) American adults
currently assists an older family member, according to a new Ipsos
survey conducted on behalf of RBC Wealth Management- U.S.
Specifically, 17 percent of respondents regularly help with chores,
cooking, cleaning or traveling to appointments, 5 percent provide
housing and 5 percent offer financial support.*
RBC collaborated with Ipsos to poll more than 2,000 Americans
aged 35 and above on a range of issues related to their personal
finances. The survey found that among those who provide financial
support to an older relative, the average monthly contribution is
$403. Twenty-two percent contribute
$500-999 and 14 percent contribute
more than $1,000.
"As lifespans increase, and as the cost of health care reaches
new heights, many adults are shouldering the responsibility of
ongoing support for their family members," said Angie O'Leary, Head of Wealth Planning at RBC
Wealth Management – U.S. "It's important for individuals to have a
financial plan in place so they can help care for their relatives,
while also preparing for their own financial future."
The Impact of Cognitive Decline
Among respondents who
have a senior relative in their life, 10 percent say one they help
care for has been diagnosed with some form of dementia, and another
9 percent say someone else in their family has been similarly
diagnosed.
According to the Alzheimer's Association, 5.7 million Americans
are living with Alzheimer's disease, a figure that is expected to
reach 14 million by 2050. As cognitive decline becomes an
increasingly significant part of Americans' lives, it is having a
massive impact on families' finances, not only due to increased
medical expenses but also because those with dementia may make
financial missteps and are at increased risk for becoming targets
of fraud and abuse.
Many of the survey respondents are experiencing these effects
firsthand. Among those respondents with a senior family member, one
in ten (11%) either knows or suspects that their loved one has been
a victim of financial abuse. This figure rises to 30 percent among
those with a family member they care for who has been diagnosed
with dementia.
Of note, 45 percent of total respondents cite "being taken
advantage of" as a concern for their own retirement.
While many Americans with a senior relative who has been
diagnosed with dementia are aware of potential abuses, not all are
equipped to address them. Twenty-eight percent of respondents in
this group have taken formal steps with a financial institution or
lawyer to protect their family member's finances in light of a
diagnosis, and a similar proportion (29%) have taken some informal
steps, while 43 percent have taken no steps at all.
"Only about half of the people we surveyed say they're familiar
with the steps to take if they suspect an older relative has been a
victim of abuse. Families are certainly doing their best in these
situations, but the industry has a significant responsibility and
role to play in protecting vulnerable populations," said
Jen McGarry, who heads RBC's Client
Risk Prevention division. "Our advisors are working closely with
clients and their families to understand how cognitive disease can
put them at risk, and to put safeguards in place to preserve their
dignity and their assets."
Financial Demands from Above and Below
In addition to
caring for aging family members, many Americans are also part of
the "sandwich generation", supporting younger relatives as well. A
fifth of all survey respondents (21%) say they have adult children
(aged 18+) who they help support financially. This figure rises to
23 percent among the respondents who are mothers and 24 percent
among parents between the ages of 35 and 54. Parents in
higher-income households are most likely to be supporting adult
children, at 25 percent.
Among those respondents providing financial support to adult
children, the monthly contribution averages $445. For parents in high-income households, the
figure is $681.
"While today's job market is strong, many young adults who
entered the workforce in the wake of the Great Recession find
themselves behind the income curve. Student debt is and will
continue to be a crushing burden for Millennials, Gen Z and the
generations to follow. Thus, many parents of adult children may
feel obligated to help out financially, if they can," added
O'Leary. "Every family needs to make the decisions that are best
for them. I would encourage individuals to work with a professional
to develop a plan that factors in support for loved ones without
jeopardizing a comfortable retirement for themselves."
*Sums to 19 percent, as some help in more than one way.
About RBC Wealth Management – U.S.
In the United States, RBC Wealth Management
operates as a division of RBC Capital Markets, LLC. Founded in
1909, RBC Capital Markets, LLC. is a member of the New York Stock
Exchange, the Financial Industry Regulatory Authority, the
Securities Investor Protection Corporation, and other major
securities exchanges. RBC Wealth Management has $344 billion in total client assets with
approximately 1,800 financial advisors operating in 200 locations
in 42 states.
About the Study
These are some of the findings of an
Ipsos poll conducted between October 11 and
16, 2018 on behalf of RBC Wealth Management. For this
survey, a sample of 2,028 Americans aged 35+ was interviewed.
Weighting was then employed to balance demographics to ensure that
the sample's composition reflects that of the adult population
according to Census data and to provide results intended to
approximate the sample universe. The precision of Ipsos online
polls is measured using a credibility interval. In this case, the
poll is accurate to within ± 2.5 percentage points, 19 times out of
20, had all Americans aged 35+ been polled. The credibility
interval will be wider among subsets of the population. All sample
surveys and polls may be subject to other sources of error
including, but not limited to, coverage error and measurement
error.
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SOURCE RBC Wealth Management - U.S.
