For most Americans, paying for their children's' college education is a much higher priority than saving money for retirement or for dealing with future medical expenses. A study conducted by Massachusetts Mutual Life Insurance Co. found that only three in 10 American parents feel they are adequately preparing for retirement.
Kevin Paasch, a MassMutual assistant general agent and sales manager at Commonwealth Financial Partners in Virginia Beach, Va., first talks with families about paying for college. "Then when we discuss retirement, I ask if they plan to get any financial aid to help with retirement.
"I get puzzled looks, but the point is made, and we start reprioritizing their financial goals. Planning for your children's education is a critical need, but prioritizing this above your own financial future may be risky."
The study found nearly 40% of respondents developed a financial plan for their retirement savings. For women, however, that total slipped to just above 30%. But women can expect to be retired for at least 50% longer than men.
Over 70% of respondents said that it is important their children aren't burdened by taking care of them when they are older.
