Older Americans Supporting Younger Generation, Not Vice Versa: EBRI

Among those ages 50 and older, relatively younger households are more likely to transfer money to their families and relatively older households are more likely to receive such transfers.

The amount transferred from older Americans to their children and grandchildren generally goes down with age. Between 2008 and 2010, the average amounts transferred by households who had at least one member age 50 to 64 and 85 or older were $8,350 and $4,787, respectively, the report states.

The average transfer amounts from younger family members to older households are much smaller. During the same two-year period, households who had at least one member 85 or older received the highest average transfers among all age groups, and the average amount was $359.

"For the older households, cash transfers can reduce their retirement assets, raising concerns about retirement security particularly for low-income groups," said Sudipto Banerjee, EBRI research associate and author of the report, in a statement. "Although cash transfers are more prevalent in high-income households, a significant percentage of low- and middle- income households transfer cash as well."

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