A curious finding about what occurs when children grow up and leave home has developed something of a mystery in the retirement planning neighborhood. Academics have actually long thought that at the empty-nest phase, moms and dads have more disposable income and step up their retirement saving. Turns out, that extra cost savings doesn’t happen or at least not the degree researchers have actually predicted.
This finding has big implications, and not simply for retirement researchers. A late-in-life savings increase is crucial for households that have been falling back, in part because of all the cash spent on their kids for the last 18 or 21 years. The concept that moms and dads would enhance their cost savings after their kids left home has actually figured mostly in earlier research studies that found Americans are not moving towards a retirement crisis.