Older Americans Risking Their Retirement to Help Young Homebuyers

A poll from the Legal & General Group estimated that more than 1 million U.S. parents and grandparents have offered $41 billion in financial support to next-generation homeowners, with 54 percent of that total coming from retirement savings, reports Mortgage Professional America . The survey found 29 percent of "Bank of Mom and Dad" lenders financially assisted younger homebuyers, but 15 percent reported being in worse financial straits as a consequence and 14 percent felt their future is less financially secure. "The generosity and support many people choose to provide family members is compromising their own quality of life," declared Legal & General Group Chief Executive Nigel Wilson. "This generation is helping kids and grandkids purchase property throughout the country, but it would appear that many don't really have sufficient wealth to do so without impacting their own retirement plans. It's disturbing to see that some moms and dads have even had to postpone retirement in order to help."