Gen Z Overwhelmingly Willing to Take Care of Their Parents As They Age. But Can They Afford It?

Caring.com survey shows that Gen Z plans to care for their parents as they age but are grossly uninformed about how much it will cost.

Gen Z gets a bad rap, often called lazy, entitled and self-absorbed by the media and older generations. But, Caring.com’s new study shows that Gen Zers may be more compassionate than they get credit for. 

Caring.com partnered with Pollfish to survey 1,500 adults — 500 in Gen Z, 500 in Gen X, and 500 in the Baby Boomer generation. The survey polled the younger group about their plans to care for their parents as they age and the older groups about how involved they anticipate their children being in their future senior care. 

The results showed a discrepancy between the younger generation’s plans and parents’ expectations. Only 61% of adults in the Gen X and Baby Boomer generations said they think their children will be involved in their care. Meanwhile, 72% of Gen Z plans to be involved in their parents’ care. 

N. Taylor, a 27-year-old Gen Zer, says of her desire to help her parents in the future, “My parents have given me so much… it’s not just a duty, but an honor to get to help care for them in what ways I can as they get older.” 

However, some of the younger generation’s willingness to provide care could be due to naiveté about how much effort and money it entails. Only 16% correctly answered when asked about the average annual cost of senior care. And, as the cost of living increases and wages remain stagnant, it’s unlikely they’ll have enough money to financially support their parents without careful planning and saving for the future. 

“I am concerned that even with their preparation and our contribution, we won’t be able to afford the kind of life I would want them to live in their last chapters,” says Taylor. 

This is why talking to your family about and planning for senior care is so important. “The greatest issue plaguing seniors and their families is the lack of preparing and planning early enough,” says Susann Crawford, VP of Sales at Caring.com. “The costs, capabilities, and availability of services are most often very underestimated and often create a barrier to families and seniors getting what they truly need in a timely manner. Those who have navigated these vast changes in life the best are those who planned and educated themselves early regarding options for their future.”

Almost 3 out of 4 Gen Zers Plan to Have Some Role in Caring for Their Aging Parents

Gen X and Baby Boomer Parents Underestimate Their Children’s Willingness To Help Them As They Age

When asked what role they anticipate playing in their parents’ care as they age, 72% of young adults said they anticipate their parents moving in with them or serving as their parents’ primary or supportive caregiver. 

However, parents of Gen Zers do not expect this much help- only 61% said they anticipate their children will have some caregiving role. And while 17% of older adults do not think their children will be involved in their caregiving as they age, only 10% of younger adults do not anticipate having any role in their parents’ care- a 50% difference. 

Nearly Half of Gen Zers Anticipate Their Parents Moving in With Them as They Age

Of the 72% of young adults who plan to have some part in their parent’s care as they age, many of them expect to have a significant role. In fact, 40% anticipate their parents moving in with them in the future. Meanwhile, only 26% of Gen X and Baby Boomers think they will move in with their children if they need care as they age. 

1 in 3 Gen Zers Say a Lack of Money Is Why They Won’t Help Their Parents in the Future

10% of Gen Z respondents said they have no plan to be involved in their parents’ care as they age. When asked why, 33% of that group said they do not anticipate having the financial resources to do so. 

Meanwhile, many Gen X and Baby Boomers think that their children simply won’t be willing to care for them – 40% of Gen X and Baby Boomers who don’t think their children will care for them said they do not think their children will be willing to spend time or resources to do so. However, only 20% of Gen Z gave this as their reason, a 69% difference. 

6 out of 10 Gen Zers Plan to Financially Help Their Parents as They Age, but Fewer Than 1 in 5 Know How Much it Will Cost

Less Than Half of Older Adults Expect to Have Any Financial Help From Their Children

34% of Gen Z respondents said they plan on fully paying for all future care their parents cannot pay for themselves, and an additional 26% said they plan to offer partial financial support. Meanwhile, only 23% of Gen X and Baby Boomers anticipate that their children will cover any care costs they cannot afford.

Only 16% of Gen Z Know How Much Senior Care Actually Costs 

Gen Zers have good intentions when it comes to paying for their parents’ senior care, but they grossly underestimate how much that will cost. When asked how much they think they’ll need to pay annually for their parents’ care, only 16% correctly answered $50,000-$70,000. 

And, senior living costs rose by 5.3% in the first quarter of 2023. If this inflation continues, Gen Z will face even higher costs. 

“Inflation is always a formidable issue when considering cost for the future… As people saving/preparing to support our own family and then planning to potentially help care for our parents as best as we can, it can feel like an uphill battle trying to invest, pay for a home, and support a decent life. All the while, we both have to work jobs with pay levels that are being quickly overtaken by the most basic entry-level job positions, due to the increasing cost of living” says 27-year-old Taylor. 

How to Get Started With Planning for Senior Care

As the survey data shows, many adults and their children are not on the same page when it comes to the parents’ future care needs. A lot of the confusion could be due to a lack of communication and openness- fewer than 40% of Gen X and Baby Boomers have discussed their future care needs with their children, and only 10.5% have a plan in place for caregiving and/or financial support. 

Having open and honest discussions as a family about your wishes for any needed care in the future can ensure you’re all preparing while there’s still time to do so. But, we understand that this is easier said than done. Aging is a complicated topic to discuss and can bring up a lot of fear and uncertainty. 

To help you through these challenging situations, we’ve outlined some tips for starting the conversation about senior care with your family. Then we discuss some actionable suggestions so you can take the first steps toward planning for your future.

Start the Conversation

Take the First Steps

After talking to your family about your care, you’ll want to start preparing. Some ways to get started include: 

Methodology 

Survey Methodology

Caring.com partnered with PollFish to survey American adults to determine if parents and children have the same expectations for the parents’ future care needs. The survey was completed by 1,500 American adults over the age of 18, evenly split between Gen Z, Gen X, and the Baby Boomer generation. The survey was conducted online on October 3, 2023. 

For full survey results and more information about the survey, contact editorial@caring.com. 

How We Determined Annual Senior Care Costs

Assisted living in the United States costs an average of $4,500 a month, or $54,000 a year. In-home care ranges from an average of $4,957 a month for personal care and household assistance to $5,148 a month for home health care services, $59,484 and $61,776 per year, respectively. And, nursing home care is even more expensive at $7,908 – $9,034 a month, though much of the cost can be covered by Medicare and Medicaid. Given that the above figures are national averages, some people will face higher or lower costs depending on their location. Thus, our estimate for the annual cost of regular senior care is $50,000-$70,000.