The theme this week on the Retirement Quick Tips Podcast is: How To Stop Financially Supporting Your Adult Children. As I mentioned earlier this week, At the peak of the pandemic, 52% of young adults between 18-24 years old moved back in with their parents, according to data from the Pew Research Center. But more than two years later, 40% of parents are still hosting their adult child in their home, and in many cases, financially supporting them. 

A survey by Thrivent, a financial services firm, found that 35% of parents with adult children at home have compromised their retirement savings to help their children financially. 

Another study from Savings.com found that 50% of parents give their adult children $1,000 a month in financial support, and 25% are willing to dip into their savings and retirement to cover the expense.  

This is not good news for your retirement. Relatively few Americans have enough to fund their own retirement, so dipping into your savings, especially if it’s to fund the expenses of able-bodied adult children is not a good idea. 

It’s also interesting to note that continuing to help adult children is causing a meaningful delay in retirement. In fact, only 21% of baby boomers who support their adult children are retired, compared with 52% of baby boomer households whose adult children are financially independent, according to a survey by Hearts & Wallets, comprised of more than 30,000 household interviews.

In other words, you’re more than twice as likely to not be able to retire as your boomer counterparts with financially independent children. 

Tomorrow, I’ll share with you some ideas on how to lovingly push your adult children back out of the nest.

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.  

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance