January 30, 2013

CHANGE: Rising Financial Burdens for Middle-Aged Americans.

With an aging population and a generation of young adults struggling to achieve financial independence, the burdens and responsibilities of middle-aged Americans are increasing. Nearly half (47%) of adults in their 40s and 50s have a parent age 65 or older and are either raising a young child or financially supporting a grown child (age 18 or older). And about one-in-seven middle-aged adults (15%) is providing financial support to both an aging parent and a child. . . .

One likely explanation for the increase in the prevalence of parents providing financial assistance to grown children is that the Great Recession and sluggish recovery have taken a disproportionate toll on young adults. In 2010, the share of young adults who were employed was the lowest it had been since the government started collecting these data in 1948. Moreover, from 2007 to 2011 those young adults who were employed full time experienced a greater drop in average weekly earnings than any other age group.

Unless the economy starts growing, this won’t change. We’ve got a Junior Squeeze and a Senior Squeeze, and both are contributing to the middle-aged feeling stretched.

Related: Obama Keeps Us In Our Parents’ Homes.