Advertising Disclosure

Are your adult children threatening your retirement?

A recent survey uncovers a troubling trend

Updated:

Avatar photo
By:
Avatar photo

Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.

Key Insights

  • 46% of parents report adult children aged 18-35 moving back home, continuing a trend seen in previous surveys.
  • 38% of Boomerang parents say long-term financial goals, like retirement, have been impacted by their children living at home.
  • 60% of young adults say their parents have not discussed the financial impact of supporting them a second time.

As any millennial or Gen Z will tell you, it’s tough out there. That’s caused many young adults to move back in with Mom and Dad. But a recent survey by a financial services firm found this trend could lead to financial strain for parents who should be preparing for their retirement.

Thrivent’s fourth annual Boomerang Kids Survey found that having adult children move back in can trigger financial strain and long-term concern. While offering financial and emotional support to adult children may seem like an act of love, new data reveal that it can also become a “Boomerang Burden” for many parents unprepared for the long-term financial implications of housing grown children.

There are a lot of moving parts to the scenario, the survey found. While 32% of respondents cite housing affordability as the primary reason young adults return home, that number is down from 50% in 2024, suggesting rent prices may be stabilizing. 

However, other rising costs are compounding the issue. Essentials like groceries and transportation are forcing 30% of adult children back home, and 20% have moved in due to major life events such as divorce or separation.

Parents pay the price – literally

Parents continue to step in as a financial safety net, but not without consequence. Nearly four in 10 parents (38%) report that supporting their adult children has disrupted their long-term retirement savings. An almost equal number (39%) say their short-term savings, for items like vacations, have taken a hit.

Year-over-year data from the survey paints a picture of mounting financial impact:

  • Short-term goal savings affected: Up to 39% in 2025 from just 21% in 2023.
  • Retirement and housing savings: Impacting 38% of parents, more than double 2023’s 16%.
  • Debt repayment ability: Declined for 34% of parents.
  • Healthcare savings: Consistently strained for 21% of respondents.

Despite these growing burdens, many parents have not shared the financial toll with their children. Sixty percent of adult children said their parents never discussed how supporting them affects the household’s financial future.

Financial literacy gaps complicate the situation

Although more than half (54%) of adult children rate their financial management skills as “good,” those living at home tend to score lower. Only 46% of boomerang kids receive good marks on budgeting, compared to 63% of those who never returned home.

Parents may be hitting their limit. Forty-five percent say they have withdrawn or scaled back financial support due to the economic environment—suggesting that emotional generosity is colliding with financial reality.

Thrivent financial advisor Alex Gonzalez, who has personally helped a boomerang child regain independence, emphasizes the importance of structure and communication.

“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 Gonzalez.

He recommends a strategic approach:

  • Prioritize your own retirement and health care needs before making major commitments.
  • Have adult children mimic rent payments through a savings plan to build financial discipline.
  • Share the household costs and involve children in contributing, even if modestly.
  • Continue money conversations even after children leave home to ensure sustainable independence.