Apr. 2: Impact of Adult Kids Moving Home

April 2, 2026

Many impacts for parents when adult kids are forced to move back home

Work is done, the mortgage is paid, debt is finally under control – and then the nest, empty for years, fills up again.

What are some of the impacts on retired people when adult children – perhaps due to housing difficulties, unemployment, illness or other reasons – move back home with their senior parents? Save with SPP decided to have a look around to see what people are saying about this growing trend.

Writing for MoneyWise, Chris Clark reports that “a volatile economy, high student debt and rising housing prices have seen many adult kids `boomerang’ back to their childhood homes in droves.”

Clark cites recent research from Thrivent that found “soaring real estate costs, among other factors, have made it increasingly difficult for young adults to afford their own homes — forcing many to return to their parents as a temporary solution while they save money or search for more affordable options.”

And, Clark continues, a recent USA Today poll found that “65 per cent of parents admitted to providing some sort of financial support to their kids between the ages of 22 and 40… with parents shelling out an average $718 USD a month to support their adult kids.”

There are financial consequences for parents of boomerang kids, Clark notes.

“When kids move back in, household expenses inevitably increase. Parents may find themselves paying higher utility bills, buying more groceries, and covering additional living expenses. These increased costs can strain the household budget, especially for parents who are nearing retirement or are already retired,” Clark notes.

“Parents may dip into their retirement funds or delay their retirement plans to accommodate the needs of their adult kids — potentially jeopardizing their financial security in the long term and draining the money available for their golden years,” Clark adds.

The Times of India expands on the consequences for parents.

“The increased household costs for groceries, utilities, and healthcare are taking a toll, with some families opting to create cost-sharing arrangements,” the publication reports.

Financial advisor Alex Gonzalez tells the publication that “taking care of your adult children is an act of love, but it requires a delicate balance between a desire to help and your own financial planning.”

Indeed, the article continues, “38 per cent of parents report that their long-term savings, including retirement contributions, have been impacted by the return of their adult children. Another 39 per cent say their short-term financial goals, such as saving for vacations or home renovations, have also been affected.” The article refers to U.S. statistics.

The Times article concludes with this advice.

“As the number of boomerang kids continues to rise, American families are adjusting to the new financial realities of multigenerational living. While the return of adult children can offer emotional support, it is reshaping household dynamics and requires careful financial planning to navigate successfully.”

An article on the Focus on the Family Canada website provides some guidelines that were set by the author and his wife when their 22-year-old son faced homelessness after bouncing around and living with friends.

They set rules, such as no guests were to be allowed when the parents weren’t home, that the parents have the final word on house rules, that the son would get a job, pay his own way, and “equip himself for the future.”

While things were difficult at first, the author notes, their son has generally followed the rules and is growing more independent.

“For the first time, (our son) is making his own doctor appointments, paying his bills and taking charge of his life. In the past, we would have done all of these for him. Our decision to maintain a `hands-off’ policy has nudged Brad toward greater independence.”

Perhaps having an adult child move home will present you with an opportunity to get them thinking about long-term saving.

If your child does not have a pension plan through work, the Saskatchewan Pension Plan may offer a helping hand in the savings department. Members decide how much they want to contribute annually – the plan is open to any Canadian with available registered retirement savings plan room.

Members can also transfer funds into SPP from any RRSPs they may have to consolidate the nest egg.

SPP does the heavy lifting from there, investing all contributed funds in our professionally managed, low-cost pooled fund. When it’s time to retire, member options include the security of a lifetime monthly annuity payment or the more flexible variable benefit.

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Focus on the Family Canada, MoneyWise, Times of India

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