Americans Challenged With Saving For Retirement and College

Americans Challenged With Saving For Retirement and College

Another recent survey, this one from the Society of Actuaries (SOA), found that a significant percentage of American workers and retirees are sacrificing their retirement security to pay for a family member’s or friend’s college education.

More than half of all respondents (58 percent) aged 25 to 80 who are of working age or retired said they have delayed retirement significantly or moderately due to these dual financial goals. Additionally, two-fifths (41 percent) of retirement/college savers have used retirement funds to pay for the college education of a relative, with the risk of a tax penalty for early withdrawals.

“The challenge of prioritizing different savings goals, including college for family members, has led to families making difficult choices, such as delaying retirement plans,” said R. Dale Hall, FSA, MAAA, CERA, Managing Director of Research, SOA Research Institute. “This consumer survey helps identify the underlying challenges individuals and couples face in balancing multiple financial goals, such as funding a college education, providing for unexpected financial needs, and planning for a secure retirement.” Read the full report.

Published by

Darryl Hicks

Darryl Hicks is Vice President of Communications for the National Reverse Mortgage Lenders Association. In this capacity, Hicks writes for NRMLA's publications, manages the association's web sites and social media accounts, assists committees and the Board of Directors, and manages the Certified Reverse Mortgage Professional designation. Prior to joining NRMLA in 1999, Hicks spent three years in the Washington, D.C. bureau for National Mortgage News.