As economic difficulties push some adult children to move back home, parents say they’re feeling the financial strain of housing their loved ones.
A recent Thrivent survey found that parents are now more likely to provide temporary financial support for adult children who are returning home, potentially causing a long-term “Boomerang Burden” on their parent’s retirement needs. Adults are moving back home due to several economic factors, including housing affordability (32%), rising prices on essentials (30%), and because of personal reasons like divorce or separation (20%).
While adult children are returning home, Thrivent did note that less are moving in due to housing affordability, down from 50% in 2024.
Still, the research reports that 38% of parents say that providing financial support has impacted their long-term retirement savings. As a result, 45% have either withdrawn or scaled back on offering this type of support to their adult children.
Other findings from past reports—including one from the Journal of Retirement—contend this idea, showing that parental savings in retirement accounts only increases slightly when adult children leave home.
“Taking care of your adult children is an extremely caring act of love, but it also requires a delicate balance between a desire to help and your own financial planning,” said Thrivent Financial Advisor Alex Gonzalez. “I know firsthand the stress this can put on families, which is why I’m a huge advocate for long-term financial planning with a financial advisor. With the right advice and planning, parents can develop a strategy for helping their adult children without jeopardizing their financial goals.”
While it won’t deter adult children from moving back home, setting long-term financial goals with a financial advisor can help prepare parents ahead of time and prioritize their targets. Further, it can support parents navigating the tradeoffs between their long-term financial goals and the short-term support they want to provide to their children, added Gonzalez.
Thrivent’s survey was fielded through Morning Consult and includes a total sample of 2,195 adults. The company services over 2.4 million clients and has more than $193 billion in assets under management (AUM).
SEE ALSO:
More College Students Heading Back Home, Putting Retirement at Risk
‘Boomerang Children’ Rarely Influence Parental Retirement
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.