One in five retirees is helping a grandchild pay college costs, according to new Millionaire Corner research.
One in five retirees is helping a grandchild with college costs, according to a new survey by Millionaire Corner that also found that more than 8 percent of retirees are paying for the educational expenses of a child.
Retirees who are helping out a grandchild are likely to be paying about one-fourth or less of college costs, according to a survey of more than 930 investors conducted in April. Results show that about 45 percent of retirees who are helping a grandchild are paying 10 percent or less of the bill, and 20 percent are paying between 11 percent and 25 percent of college costs.
On the other hand, retirees who are supporting their children through college are likely to be paying a hefty amount of the bill, according to our research, which shows that half are paying 100 percent of college costs, while 20 percent are covering more than three-fourths of the bill.
The vast majority of retirees – 89 percent - say they have planned to pay for their child’s college costs, and do not feel the expenses pose a burden at this time. One-fourth of retirees said they have had to budget college costs by cutting back in other areas. And, about 11 percent express “major financial concerns” about college costs for their child.
The educational expenses of a grandchild are less likely to have figured in retirees’ long-term financial plans. About two-thirds say they have planned for a long time to help a grandchild with educational expenses. About 16 percent say they have had to cut back in other areas of their budget to help a grandchild with college costs, and more than 38 percent express “major financial concerns” about college costs for their grandchild.
Some retirees – 20 percent – feel that the grandchild’s parents should be paying more of the educational expenses, though a greater share – about 39 percent – disagree with this statement. Few retirees – less than 7 percent – feel their grandchild should be paying more of their college costs.
According to a Millionaire Corner survey of 1,150 investors conducted in March, retirees are most worried about inflation, the costs of health care and retirement security. They rank the education expenses for their children and grandchildren near the bottom of their list of financial concerns.
Overall, retirees express relatively low levels of concern about their levels of debt, according to our April survey, which shows that less than 8 percent of retirees identify education costs as contributing to their personal debt levels. The most significant single factor leading to debt among retirees is unexpected medical bills – not college costs.