It has been long assumed that once children grow up and leave home, reductions in spending will follow as parents handle a more disposable income. However, recent findings have shown that many households aren’t showing an increase in savings as one may expect. For many empty-nesters, a later in life savings jump is crucial for families that have been supporting their children for the past 20-some-odd years. According to certain estimates, empty-nester’s savings are supposed to increase by as much as 12 percentage points. But a recent study performed by the Boston College Center for Retirement Research found that 401(k) savings plans are only showing a mere increase in saving of 0.3% to 0.7%.

So, despite children leaving the nest, parents are spending virtually the same amount as they did while their children were still living at home. In other words, parents are heading into retirement with higher expectations and less of a means by which to meet them. According to the Economist, lawmakers “...continue to ignore the savings crisis that should worry them: Many Americans do not have enough savings ever to be able to retire.”

So, why are empty-nesters failing to reach the savings boost they expect which should help render them prepared for retirement?

Cost of Education

First, the majority of savings models assume that expenses decline when children leave home. However, the hefty cost of college has left parents with similar expense patterns. Even though these children are grown and out of the house, parents are still spending their money on them. According to a recent study done by Pew Research, 61 percent of Americans reported they had fiscally supported an adult child in the past 12 months. A little over half of these respondents reported that their help was special circumstance, while a little under half reported this expense was recurring. This recurring expense is vastly due to higher education spending, whether this is direct help with the cost of education or financial assistance due to what an adult child is spending on college and beyond.

Cost of Children Beyond Education

Education aside, a number of expenses can be eliminated once children leave home. Many parents continue to keep their children on car insurance plans, pay their cellphone bills or assist them in basic day to day living expenses. Helping children get on their feet can be important, but teaching them to manage their own financial responsibilities as young adults is a must. If children return home after college, teaching them responsibilities such as paying the internet bill at home each month can make them less likely to rely on you for cash, according to the Washington Post.

Unwillingness to Cut Back

Another reason for an absence of savings is due to parents’ reluctance to curtail additional expenses. Parents are spending more on vacations, dining out and home improvements. Parents assume that with children out of the house, they are granted more flexibility with their finances. A recent survey done by the American College of Financial Services found that of older adults with at least $100,000 in financial assets and $100,000 in home equity, 83 percent did not want to relocate in retirement. In other words, these adults want to remain in their current home, unwilling to downsize. These superfluous expenses are feeding into the ever-building retirement crisis.

It is evident that making smart financial choices 10 or so years before retirement is a crucial stepping stone in ensuring a successful retirement plan. Lifestyle choices must be managed in this decade in order to set yourself up for a comfortable retirement. Learn to make smart financial guidelines with your children here.