A growing number of young adults are living with their parents, leading many families to reduce retirement savings to cover the additional household expenses.
Key facts
- •The number of young adults living with parents is approaching levels seen during the pandemic.
- •A Thrivent survey found that 50% of parents supporting adult children feel the impact on their finances.
- •20% of parents supporting adult children say they will cut back on retirement savings if needed.
The share of young American adults living with their parents has returned to levels near those seen during Covid-19 lockdowns. This trend is increasingly impacting the financial stability of parents, as many report that supporting an adult child is straining their personal budgets.
Financial Impact on Parents
According to a survey conducted by Thrivent, half of the parents who are currently supporting an adult child report that the arrangement is negatively affecting their overall financial situation. As a result, one in five of these parents stated they are prepared to reduce their retirement savings to manage the added costs.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by Bloomberg Markets.
