Families Are Struggling to Make Money and Stay Together

Working parents say they’re killing it at work and home, but data says differently.

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Seventy-eight percent of parents say it’s possible to succeed as a parent and at work, says a study from CareerBuilder. However, roughly a fifth of parents say work dampers their family life, and their kids have asked them to work less.

Sixty-six percent of working parents say they spend at least three hours a day with their kids. But, 38 percent have missed a big moment in their child’s life in the last year — 21 percent have missed three or more.

When parents are asked how likely they are to quit their job if their spouse earned enough to support the whole family, only 25 percent say they would, and 65 percent wouldn’t take a pay cut to spend more time with their kids. Probably because of the stress money puts on a marriage.

Money stress in marriage

Thirty-six percent of married couples say that money is the biggest stressor in their marriage, says a study from Ally Bank. That’s more than twice the amount who said their health (17 percent), and family (13 percent) are the largest stressor.

“Marriage is a joyous event, but like any important milestone in life, planning is the key to success, especially when it comes to personal finances,” says Ally Bank executive Diane Morais. “Open communication between the partners about how to spend and save money together can help establish a solid financial footing. It also is important to choose the right banking partner to achieve both short- and long-term financial goals.”

Debt.com has previously reported that marriage ends in divorce when couples don’t communicate and can’t agree about money. A survey from credit bureau Experian found that 60 percent of divorcees say finances played a role in their split. But divorce doesn’t just relieve you of financial woes, sometimes it can harm your finances even further.

Divorce and retirement risks

Divorced Americans are at a higher risk of not having enough saved for a full retirement, says research from the Center for Retirement Research at Boston College with help from investment firm Prudential.

Divorced households have a 7 percentage point greater risk of not having enough saved for retirement, compared to those who haven’t divorced. But half of all households are already at risk of having inadequate retirement savings.

“Millions of American households are at risk for not having adequate retirement income, and the challenge is even more acute among divorcees,” says Prudential executive Kent Sluyter. “These are sobering numbers that highlight a fundamental shift that needs to take place in the way we think about retirement. Instead of solely thinking about accumulating savings, people also need to consider a plan for protecting and generating retirement income.”

Divorced couples don’t have only the typical retirement saving woes. They also need to concern themselves with alimony payments, splitting assets, not to mention increasing living expenses on a single income when you’re used to two.

“With so many factors to consider, it is more important than ever for divorcing couples to assess their financial plans and find opportunities to stretch their wealth and think about future income streams as they prepare for retirement,” says Prudential VP James Mahaney. “This is especially important for women, who not only tend to be the lower earner, but also receive less alimony under the new tax law.”

Read more on our website…

Originally published at www.debt.com on September 3, 2018.

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