“Providing financial support to anyone, but especially to an adult child, can have tremendous consequences for retirement and estate planning,” said Chris Brown, a principal at Hearts & Wallets, in a statement.
“Financial services firms would be wise to examine their client bases for this trait and adjust product and service offerings to meet the needs of the nearly [48] million Boomer households.”
Boomerang Kids:
Boomerang kids (the group of adult children returning home) are preventing baby boomers from reaching retirement.
“Between 2005 and 2014, the fraction of young adults age 18 to 31 who lived with their parents rose 15%, according to a study by Federal Reserve Board economists. Not only is this rate of change unprecedented, but the percentage of young adults residing with parents has reached a historic high of 36%.”
Adult kids are moving back home and there’s not much stigma around it. Why? Well, in part it’s because it is perceived that ‘everyone is doing it. In addition, increased debt loads, driven in part by student loans. Causing a financial strain on both the kids and the parents.
The end result is that if you have adult children living at home, the increased financial burden really puts a strain on your ability to save; much less retire.
For some ideas on how to address this potential land mine with your adult children, read the full article.
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