What Happens When Parents Fall Short in Retirement?

Anqi Chen, Boston College and Marc Cohen, UMass Boston

Many households do not have enough saved to maintain their standard of living in retirement. This resource gap means that retirees will have to cut back on consumption and, in some cases, rely on children or other family members to help. Data show that Black and Hispanic individuals are more likely to transfer money to parents and other family members and do so at younger ages. This pattern can have a lasting impact on the children’s ability to save, potentially perpetuating cycles of generational retirement insecurity. SSA has an interest in understanding how falling short in retirement impacts current and future generations and the role Social Security plays in moderating generational cycles of retirement insecurity.