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Financial planning for older parents

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A recent CNBC article notes that as more Americans are having children later in life, the financial burdens of young-adulthood, like college tuition, are presenting themselves to parents who are beyond the traditional retirement age.

The source cites U.S. Census Bureau figures that indicate the number of households with young children and older parents is on the rise. 19 percent of households with children under the age of six had parents 40 years old or older.

Although these retirees are likely to face the costs of college as they near retirement age, some experts say that retirement should remain the top priority, noting that college students have options like scholarships and loans that aren't available to senior citizens.

Despite the strains, older parents also typically have advantages. Financial planner Lauren Lindsay told the source that older parents are usually more financially stable and fiscally responsible, saving more money early in their child's life than younger parents typically do. Certain federal programs also assist retirees with younger children, as minors with a parent aged 62 or older can receive social security benefits.

In the wake of the economic downturn and as a response to shifting financial values, ownership of life insurance policies took a significant hit. According to a 2010 LIMRA study, only about one third of Americans are covered by a life insurance policy, the lowest level in 50 years.

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