Studies
62% of Parents Plan to Postpone Retirement to Afford College Costs
Postpone Retirement for College? Parents Face Growing Pressure Amid Rising Education Costs
Many parents feel emotional sending their child to college, but financial pressure makes the journey even more stressful and overwhelming.
Families increasingly must postpone retirement for college costs, sacrificing long-term goals to give their children a debt-free education experience.
The Real Cost of Higher Education Today
New survey data from Citizens highlights the growing toll college takes on parents—emotionally and financially—especially in today’s economy.
Among 1,072 surveyed parents with kids aged 13 to 29, most reported feeling far less confident once tuition bills arrived.
In fact, 59% felt prepared during acceptance, but confidence dropped to 21% once actual college expenses came due.
Also, 58% admitted that rising living costs have compromised their ability to fully fund their children’s higher education plans.
With annual college costs reaching up to $62,990, families are using extreme strategies just to stay afloat financially during college years.
Many Parents Now Postpone Retirement for College Funding
More than 60% of parents went beyond traditional methods like 529 plans or federal student loans, turning to more drastic options instead.
Among those surveyed, 19% took second jobs, 30% tapped retirement savings, and 66% delayed large purchases or vacation time.
Significantly, 62% said they expect to postpone retirement for college, revealing how deep the sacrifice can be for families today.
“College is one of the most financially and emotionally stressful milestones for parents,” says Chris Ebeling of Citizens Bank.
But with careful planning, families can reduce strain and better manage education costs without sacrificing retirement or financial stability.
Smart Strategies for College Planning and Financial Balance
Financial planners recommend starting early. “The earlier you save, the more time your money has to grow,” says advisor Sophoan Prak.
First, calculate full college costs: tuition, housing, meal plans, transportation, textbooks, supplies, and other hidden fees that often surprise families.
Next, research scholarships. Encourage students to build good grades, take leadership roles, and apply to local and national scholarship opportunities.
Also, teach your child to contribute. Part-time jobs and summer earnings can help offset expenses and build financial responsibility early.
“Encourage students to research their dream schools and find ways to make them affordable,” adds Ebeling.
Understand loan options. Compare federal and private loans carefully—consider interest rates, co-signing terms, and repayment flexibility before borrowing.
Set savings goals. Base targets on your income and financial aid eligibility. Goals will refine as your child’s college plans develop.
Use a 529 plan. These tax-advantaged education savings accounts grow earnings tax-free when used for approved educational expenses, including study abroad programs.
Above all, avoid perfectionism. “Planning doesn’t need to be perfect,” Ebeling says. “It just needs to start early and evolve consistently.”
What Not To Do: Avoid Jeopardizing Your Retirement
While helping your child avoid student debt is admirable, sacrificing your retirement creates unnecessary risk for your entire family later.
“Retirement should stay a top priority,” warns Prak. “You cannot take loans for retirement, unlike for education costs.”
Draining personal savings or taking on high-interest loans could ultimately create more financial pressure in the long term.
“Delaying retirement for college may seem selfless now, but it can add financial strain to both generations,” Ebeling explains.
Seitz of Greenlight agrees: “Parents must think long-term. Helping now shouldn’t mean becoming a financial burden in your own future.”
This is especially important as life expectancy rises and medical costs grow—making retirement planning even more essential for parents today.
Still, experts understand the emotional desire to give children the best education experience possible without crushing debt or financial fear.
That’s why creating a balanced plan helps families provide support now while protecting long-term financial health for everyone involved.
Talk to Your Kids About College Costs Early
Though it may feel uncomfortable, talking openly about finances with your kids is one of the most powerful tools available.
“The more you plan together, the more confidence you both gain,” says Seitz, encouraging parents to involve children in budgeting.
Start by reviewing your own numbers. Decide what amount you feel comfortable contributing before discussing any college decisions with your child.
Next, keep the conversation ongoing. “Make it age-appropriate, but consistent,” Prak recommends. “Talk openly, and invite your child into planning.”
Children who help choose schools based on costs feel more ownership over their education and understand the financial impact better.
Moreover, early conversations build financial literacy, helping your child develop healthy habits that will last long beyond graduation day.
“Honesty is a gift,” adds Seitz. “It empowers children to approach money with confidence and realistic expectations from the beginning.”
Postpone Retirement for College Only If It Truly Works for You
If your financial plan requires you to postpone retirement for college, weigh all options before making irreversible choices that hurt your future.
Instead, balance your goals. Use scholarships, student contributions, strategic savings, and smart borrowing to support college without sacrificing retirement.
Though college planning may feel overwhelming, remember you’re not alone—many families face similar struggles and still find creative solutions.
For more advice on education, parenting, and family financial planning, explore more news and resources right here on this website.
