According to recent data, millennials are spending more time living at home with their parents than previous generations. While it’s great having your kids home, supporting adult children is putting a large dent into many parent’s retirement plans.
Recently, the US Census Bureau released the results of a survey that was published on Zerohedge. The survey found that 1/3 of all millennials currently live at home with their parents. While this can help with savings, the parents may wind up suffering.
The Cost of Supporting Adult Children
Published in the same article were the results of a NerdWallet Survey which found that supporting adult children’s living expenses may cost parents up to a quarter million in retirement savings.
Furthermore, parents paying college costs could be missing out on almost $80,000. More than a quarter of parents of children 18 and older (28%) are paying or have paid for their adult children’s tuition or student loans.
The average parent typically takes out around $21,000 in loans for their child’s college education, but pay out almost four times that amount from their retirement savings.
Other expenses such as healthcare, food, clothing, and entertainment were also not uncommon. Here’s how the costs broke down, with rent/housing representing the bulk of the expenses and healthcare following behind.
And here’s a look at the length of time millennial children are spending at home after reaching 18. Nearly 25% of respondents said that they had an adult child spend 5 years or more living at home after their 18th birthday.
What It Means
The lack of available funds for retirement can make choosing where to spend your golden years challenging. Thankfully, City vs City can help. With our powerful technology, we calculate your cost of living and compare your current city to another of your choosing.
Whether you’re a millennial looking to take the pressure off of mom and dad by getting out on your own; or mom and dad looking for a retirement destination that maximizes your savings; we can help.
Starting your life away from your parents can be an intimidating but necessary step. Likewise, mom and dad deserve to live comfortably in their retirement years. In either case, City vs City has the tools you need to determine where you can get the most bang for your buck.