A survey has revealed that 55-year-old Americans are not adequately prepared for retirement.

• People who plan to live with their adult children without informing them are referred to as "silver squatters."
• Americans aged 55 are less likely to have a pension and the age to collect full Social Security benefits has increased from 65 to 67.
• A financial therapist remarks that there are fresh perspectives on retirement and aging that differ from traditional teachings.

A recent study by Prudential reveals that Americans who are about 10 years away from retirement are "critically underprepared."

According to the study, 67% of 55-year-olds surveyed expressed fear of running out of savings in retirement, compared to 59% of 65-year-olds and 52% of 75-year-olds. Despite being only a decade away from retirement, the median retirement savings of 55-year-old Americans is less than $50,000, the study reported.

The possibility of an increase in "silver squatters" relying on family for housing and financial support could be influenced by certain factors.

Nearly half of 55-year-olds surveyed have not discussed their expectation of family support in retirement, despite 24% of them saying they expect it, which is twice the proportion of current 65- and 75-year-olds who said the same.

People who plan to live with their adult children are referred to as "silver squatters," a term that may catch millennials and Gen Z off guard.

Rob Falzon, vice chair of Prudential Financial, stated in an interview with CNBC's senior personal finance correspondent, Sharon Epperson, that it's not always considered how the current generation, who is taking care of their own parents and their children, will eventually require assistance themselves.

In 2024, Brunswick Group conducted the Pulse of the American Retiree Survey from April 26 to May 2 among a national sample of 905 American retirees.

According to a study, 55-year-olds are more likely to rely on "do-it-yourself" employer-sponsored plans like 401(k) plans to fund their retirement than 65- and 75-year-olds, who are less likely to have access to defined benefit pension plans.

Unlike older generations, Gen X is more likely to have children at home or be caring for aging parents.

"According to Simon Blanchard, associate professor of marketing at Georgetown University's McDonough School of Business, who has studied financial wellness, parents feel daunted when asked to estimate the financial support they'll need for their children in the moment."

Blanchard emphasized the importance of managing negative emotions related to money to prevent disengagement from finances, forgetting to save, and resorting to risky get-rich-quick schemes.

Experts suggest that pre-retirees can take proactive steps, both financially and emotionally, to prepare for retirement.

Start the conversation

It is essential to communicate your needs and expectations to family members.

Lindsay Bryan-Podvin, a financial therapist from Ann Arbor, Michigan, stated that it does not imply telling them "I'm moving in with you" or "I expect you to financially support me" when saying this.

Bryan-Podvin explained, "As I approach retirement age, we need to have a serious conversation about what that will look like for me and how it might impact us together."

Bryan-Podvin suggested that the adult children be prepared for a serious discussion.

To avoid confusion, it's a good idea to have all siblings involved in these conversations at the same time.

Experts suggest that pre-retirees with children at home should prioritize their retirement savings over helping pay for their children's college education.

"Your child has the gift of time," said Bryan-Podvin. However, unlike the parent, the child may not face job loss, poor health, or other factors that may lead to an earlier retirement.

Reset expectations

Also, get creative about what your retirement years will look like.

Bryan-Podvin stated that for a long time, the common practice has been to purchase a house to age in place and hope that everything turns out well.

She highlights the emergence of new trends, such as 'boommates,' a form of cooperative living that involves sharing living spaces with others.

Moving in with adult children can provide both financial and emotional support for parents, as well as receiving support from their children.

"Bryan-Podvin, founder of Mind Money Balance, urged people to challenge the negative stereotypes surrounding retirement and aging, emphasizing that there are fresh perspectives to consider beyond traditional views."

Think positively and understand your finances

Experts say getting a clear understanding of your financial picture is the key.

Before retiring, pre-retirees must determine their expected income from Social Security and other savings and calculate how much they will need to cover daily expenses.

It's also critical to have a positive mindset.

Gregory Marc Corneille, an investment advisor with Choice Wealth Management in suburban Atlanta, stated that it's not necessary to pass away at one's workplace.

Believing a comfortable retirement is attainable is the initial step, he stated.