New Trend: Kids Depending on Grandparents for Clothes, Money

Another thing for future retirees to consider as they calculate the amount of money they’ll need in retirement: what about the grandkids?

According to a recent study by a demographic research firm, high spending on kid’s clothes is linked to the number of senior residents in any given community. Especially communities with retirement homes for the affluent like West Palm Beach, Fort Meyers, and even Juneau.

This trend cuts across economic lines. And it signifies more than grandparents’ traditional fondness for spoiling their grandkids. A related poll found that 71 percent of parents plan to cut back on school clothes shopping this year. As times get tougher, and parents can’t provide as much as they used to, grandparents are being tapped to help pay for the necessities of life.

Retailers, the study further notes, are seeking to profit from the trend by instituting “Grandparents Day” promos or discounts to seniors who show photos of their grandchildren.

That will certainly work for the stores. But for those preparing to retire, it may be well to take a look at how their Gen-X and Gen-Y kids are faring in their careers. If not very well, boomers may have to factor the cost of helping their grandkids into their retirement planning.