Study: 80% of Americans Financially Supported a Loved One Last Year, 44% Say It Hurt Their Retirement Savings

New research finds that nearly a third of Gen Z adults supporting loved ones (30%) have already withdrawn money from a retirement account.

RICHMOND, VA, UNITED STATES, October 6, 2026 /EINPresswire.com/ — With everyday costs still climbing, many Americans are paying bills for more than one household. A new survey from My Guide to Retirement finds that 4 in 5 U.S. adults (80%) provided financial support to a family member or loved one in the past year, and 44% of those supporters say it has hurt their ability to save for retirement.

The survey of 1,000 U.S. adults examined who Americans are supporting, what they are paying for, how much they are giving, and how those obligations are affecting retirement readiness and emotional well-being. Nearly 800 respondents reported providing support in the past year, and most findings reflect that group.

The findings suggest that helping family has become a standing line item in many household budgets, one that competes directly with emergency savings, debt repayment and retirement contributions.

Key Takeaways

• 80% of Americans provided financial support to a loved one in the past year
• 38% are supporting both a child and a parent at the same time, including 46% of millennials
• 44% of supporters say helping loved ones has hurt their ability to save for retirement
• Nearly 1 in 4 supporters have reduced or stopped retirement contributions, and 13% have delayed starting them
• 30% of Gen Z supporters have withdrawn money from a retirement account because of family responsibilities
• 27% have put family expenses on a credit card, rising to 40% among those earning $100,000 or more
• 48% of those supporting an aging parent say the costs have been higher than expected
• 74% of supporters often feel stressed about their finances because of family obligations

Groceries Top the List, but the Totals Run Into the Thousands

Most of the help goes toward everyday essentials, though the annual amounts are far from small.

• 69% of supporters covered groceries and household essentials
• 41% helped with housing costs, and 39% with utilities
• 36% paid for phone, internet or streaming services
• 54% contributed $1,000 or more in the past year, including 15% who gave more than $10,000 and 7% who gave $25,000 or more

The findings suggest that family support is rarely a one-time gesture. Millennials (19%) and Gen X (15%) were the most likely to have given $10,000 or more, which may reflect a stage of life in which many are paying for growing children and aging parents at once.

The Sandwich Generation Is Getting Younger

More than a third of Americans (38%) are financially supporting a child and a parent or parent-in-law at the same time, rising to 44% among men.

• 46% of millennials and 39% of Gen Z are supporting both generations
• 35% of Gen X are doing the same
• Just 20% of baby boomers fall into the sandwich generation

Younger adults are more likely to have small children who need hands-on care, which may explain the gap. The data also hints that many boomers are on the receiving end of this support rather than providing it.

For those caring for an aging parent, the bills are often larger than planned. Nearly half (48%) said costs have been higher than expected, including 20% who said they were much higher. Groceries and essentials (61%), rent or housing (39%) and medical bills or prescriptions (33%) are the most common expenses, followed by health insurance (28%), in-home care (15%) and assisted living (9%).

When Paychecks Fall Short, Credit Cards Fill the Gap

Nearly half of supporters (47%) fund their help from regular work income, but many reach further.

• 27% have put family-related expenses on a credit card
• 15% have drawn down emergency savings
• 11% have taken out a personal loan

Higher earners were the most likely to borrow or dip into reserves. Among those earning $100,000 or more, 40% have used a credit card for family expenses, and 23% have tapped emergency savings, compared with 13% of middle- and lower-income supporters. This may reflect higher earners’ confidence that they can repay the balance or rebuild the fund later.

Retirement Savings Take the Hit

For many households, today’s help comes out of tomorrow’s security. More than 4 in 10 supporters (44%) say family support has hurt their ability to save for retirement, including 1 in 10 who describe the effect as major.

• 45% say it has hurt their emergency savings
• 40% say it has made paying down personal debt harder
• 40% say it has shaken their overall financial confidence
• Nearly 1 in 4 have reduced or stopped retirement contributions

Younger supporters are feeling the longest-term consequences. Nearly a third of Gen Z (30%) have withdrawn money from a retirement account because of family responsibilities, compared with 22% of millennials, 11% of Gen X and 6% of baby boomers. Because early withdrawals forfeit decades of potential compound growth, the findings suggest these choices may cost young savers far more than the original amount. Millennials, meanwhile, are the most likely to say they have delayed or may delay retirement (24%), compared with 17% of Gen Z and Gen X and 7% of boomers.

Confidence is low overall. Only 15% of respondents feel very prepared for retirement, while 39% say they are already behind where they expected to be. Gen X stands out, with 35% saying they feel very unprepared, the highest rate of any generation.

The Emotional Cost of Helping

The strain shows up well beyond the balance sheet. Three-quarters of supporters (74%) often feel stressed about their finances because of family obligations, rising to 76% among millennials and Gen Z.

• 80% have felt guilty setting a financial limit with a loved one at least once in the past year
• 32% frequently feel burned out balancing their own finances with supporting others
• 33% often avoided money conversations with loved ones

The findings point to a difficult bind, in which continued support drives stress while drawing boundaries brings guilt, leaving many to avoid the conversation altogether.

Hindsight Favors Planning Ahead

Most supporters (58%) wish they had started planning earlier for the possibility of helping loved ones. That regret was strongest among high earners (71%), compared with 62% of middle-income and 53% of lower-income respondents. Similarly, half (50%) believe a retirement plan should account for supporting family, rising to 70% among high earners and falling to 44% among lower-income respondents.

The findings suggest that higher earners may have assumed income alone would cover both their own future and their family’s needs. Across income levels, the survey indicates that the households best positioned for retirement may be those that plan for family support before it becomes a financial emergency.

View the full study here:
https://myguidetoretirement.org/family-financial-support-trends/

About

My Guide to Retirement helps individuals and families navigate the financial realities of retirement with educational resources, planning insights, and guidance on topics ranging from retirement income and insurance to long-term financial security. As retirement planning becomes increasingly intertwined with caregiving and family support, the site provides information to help Americans make informed decisions about their own futures and the people who depend on them.

Taylor Jay
Resolve Marketing
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