More Americans are sacrificing retirement security to support family members

If your retirement savings account isn’t what it should be, you aren’t alone. But the reason for that shortfall may be a noble one.

A growing number of Americans are putting their families’ needs ahead of their own retirement and health, according to the 2025 Protected Retirement Income and Planning (PRIP) Study by the Alliance for Lifetime Income. 

The annual survey, now in its seventh year and conducted by Ipsos, found that people are making personal sacrifices — from lowering their standard of living to skipping medical care — to continue financially supporting loved ones. Seventeen percent of respondents provide financial help to adult children over 26, 10% assist grandchildren, 7% help parents or in-laws, and another 9% support other relatives. 

More than half said this generosity affects their retirement savings. Yet, reducing or stopping support is the least popular way to stretch retirement income — only 15% would consider it.

By contrast, 58% said they’d live on less, 54% would return to work, and 21% would even forgo medical care before cutting off family assistance.

“It’s one thing to provide financial support to family when you can afford to do so,” said Jean Chatzky, CEO of HerMoney and a fellow at the Retirement Income Institute. “But it’s a whole new level of commitment to keep doing it while risking your own financial security or physical health.”

Despite this, only 28% of respondents have ever discussed the financial implications of caregiving or family support with a financial professional — a gap experts say could jeopardize retirement readiness.

Big concerns

While inflation remains the leading concern for retirees (67%), rising healthcare costs are nearly as troubling (60%). The survey shows that a major health event, physical dependence on others, and cognitive decline top quality-of-life fears.

Although 45% of participants have talked about long-term care needs with an advisor, only about a third have contingency plans for cognitive decline, or feel confident in their ability to care for a spouse.

Both consumers and financial professionals cited estimating healthcare costs as the hardest part of retirement planning, followed by deciding spending priorities and determining how to withdraw from savings.

The problem facing Gen X

As the first members of Generation X turn 60, they’re facing retirement with less optimism than baby boomers. Only 41% of Gen-Xers believe their savings will last through retirement, compared to 62% of Boomers, and 37% expect to delay retirement altogether.

This generation is also less confident in Social Security — just 44% expect to rely on it, versus 62% of boomers. And because of changes in corporate retirement plans only 14% of Gen-Xers have access to a pension, a vehicle that began to be replaced in the early 1990s by 401(k) plans.

The PRIP study underscores a critical tension in American financial life — the instinct to care for family, even at personal cost. With healthcare expenses climbing and retirement safety nets eroding, experts say balancing generosity and self-preservation will be essential for long-term financial security.