« A few outrageous predictions for 2010 | Main | The quagmire of small business recovery »

December 23, 2021

Adult kids hurting parents' retirement plans

Younger workers have good relationships with their parents and their older counterparts, according to recent study from the Harvard Business Review.

58% of Gen Y’s say they look to boomers, rather than their contemporaries, for professional advice, and over three-quarters say they actually enjoy working with the over-50 crowd.

What’s even more interesting though is that a large proportion of Y's (42% of women and 30% of men) report that they talk to their parents every day – largely about money, it seems.

Many boomers (41%) polled admit to contributing financial support to these adult children; and of those that do, the average monthly stipend they're doling out to their kippers (Kids in Parents’ Pockets Eroding Retirement Savings) is $471 per month.

Aside from this regular subsidy, financial ‘help’ from parents includes money for downpayments, weddings, cars, travel, gap years, and pensions.

Some therapists suggest this puts a strain on family dynamics, and also is a financial drain on parents who should be enjoying the freedom of having their lives back, after raising children and sending them to college.

Others, however, feel it can work well, providing you establish boundaries and set milestones from the outset. What do you think?

Do you still live with your parents? Are you still helping your adult children over the hump?

By Gordon Powers, MSN Money



Post a comment


Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...