Childless Americans Have a Retirement Problem
Americans without children are less confident about later life finances than parents—despite the cost of raising kids.
A recent survey by insurance company Allianz Life reveals that childless Americans are less confident in their retirement savings plans compared to parents. While 54% of non-parents believe they can meet their retirement savings goal, 72% of parents expressed similar confidence. The 2026 Annual Retirement Study, conducted with 1,000 people aged 25 and older, found that 62% of non-parent respondents did not have a written financial plan, compared to 42% of parents.
Researchers suggest that the absence of children does not guarantee financial preparedness for retirement, as many Americans are preoccupied with everyday expenses. Parents, on average, face higher costs associated with raising a child, with the USDA estimating $233,610 to raise a child born in 2015 through age 17. Among parents concerned about their retirement savings, 29% cited education expenses and 27% cited child care as primary obstacles.
The Allianz survey also revealed that 48% of respondents considered the difficulty of saving for retirement as a significant factor when deciding to have children, with millennials expressing the most concern. Despite these concerns, financial planning remains a crucial aspect of retirement security, as highlighted by Allianz Life's vice president of consumer insights, Kelly LaVigne.
Written by urgent.news from Newsweek's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
