Financial management expert: We should work harder to save for retirement in 2027. 3 variables

if you are workingretire When it comes to savings, you’re already a step ahead of many Americans; According to Gallup, nearly 40 percent of Americans do not have money invested in a retirement savings plan such as a 401(k), 403(b), or individual retirement account (IRA). However, financial expert Suze Orman advocates that young workers need to increase their savings in 2027, increasing their 401(k) savings by 1% or 2% and maxing out their Roth IRA contribution limits.

Money Wise, a financial website, reported that Orman said in her blog that she knew paying for current living expenses was a challenge. In addition to high housing prices, there are also gas, utility bills, and food expenses for people making long trips; But she pointed out that as she gets older, it will become more difficult to increase retirement savings, and there are three factors that could disrupt planning.

People are living longer, but more and more elderly Americans are living with one or more chronic conditions, meaning everyone is likely to be a family caregiver at some point.

Northwestern Mutual said in its “2026 Planning and Progress Research Report” that nearly two-fifths of Americans (39%) are currently or have been caregivers, and 56% believe they are likely to become a caregiver.

This will cause emotional and financial burden. A recently released survey by the American Association of Retired Persons (AARP) found that since 2021, family caregivers’ out-of-pocket expenses to care for their loved ones have increased by nearly 60%, with an average annual expenditure of 11,508 yuan, accounting for about 31% of the family’s annual income.

And that’s just average. According to data from long-term care and senior care company CareScout, the average monthly cost of an assisted living facility in the United States will be $6,200 by 2025, while the cost of a room in a nursing home will be $10,798.

Not only do family caregivers have less money to invest in their retirement savings, the AARP survey also found that nearly two-thirds (65%) of working caregivers experienced work interruptions at least once due to caregiving responsibilities, including adjusting work hours, taking time off, or taking on additional tasks.

However, stopping retirement savings contributions or withdrawing money from savings to pay for these expenses will compound the impact over time.

Peter Richardson, vice president of Northwestern Mutual, said caregivers could lose current savings, potential market gains, employer matching contributions and, in some cases, even Social Security income.

The Northwestern Mutual study also found that 21% of current and former caregivers had to work longer hours, take on a second job, or take on a caseload to ease the financial impact. That’s why Orman recommends saving more when you’re young, he said, so you’ll have more retirement savings when you eventually need to help your family.

If you have children, or are planning to have one, you may have to support them financially for longer than expected, and you may also have to care for your aging parents.

According to research from real estate website Realtor, nearly one-third of youth ages 25 to 34 will live with their parents in 2025, and they’re not just staying in the basement playing video games. Nearly 70% of young adults living with their parents are employed; Realtor economist Hannah Jones points out that whether it’s their income level, debt burden, or the cost of buying or renting a home in the local area, there are always some factors that force them to live at home with their parents, even if they have stable jobs.

Even after moving out, more and more adult children are still looking to their parents for financial support. According to a survey by lending company LendingTree, nearly 7 in 10 parents (71%) have provided financial support to their adult children. In most cases, they help pay for everyday expenses like groceries, rent, car payments, and credit card debt.