New report says more parents helping adult children financially

SAN FRANCISCO (KGO) -- Not cutting the financial cord.

Half of American parents say they sacrifice retirement savings to financially support their adult children.

The Bankrate survey found higher earners with adult children are more likely to dip into their savings, while lower-income parents are more likely to have never saved for retirement at all.

In fact, one in six parents making less than $50,000 said supporting their grown-up children prevented them from putting away anything for retirement.

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Meanwhile, 60-percent of those with adult children and a household income of 80-thousand said they've cut back on their retirement savings in order to pay for their adult children's bills.

Those include cell phone and car payments, insurance, housing and student loans.

In general, parental assistance usually ends between the ages of 19 to 23.

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However, millennials in the survey believe the cut off should be delayed by a year or more.

So, why are parents increasingly dipping into their savings to support their adult children?

The survey from Bankrate mentions "helicopter parenting" suggesting more parents have been more co-dependent with their children throughout childhood--making it hard to let go in adulthood.

Take a look at more stories by Michael Finney and 7 On Your Side.

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