How boomerang children can affect your retirement

After years of play dates, soccer games, piano lessons, and college payments, you finally have an empty nest. And then, you don’t because your adult kids have moved back in. Today, more than one-fifth of young adults live with their parents, a number that’s even higher in big cities.¹ Planning for retirement with boomerang children can be tricky. We’ll share three tips that may help you balance your needs and theirs.

The cost of living is high—most Canadians spend 35% to 50% of their income on housing and utilities. That may be why more adult children are moving home. For many families, it’s a short-term, practical way for your kids to save money and plan their next steps. If you’re nearing retirement, recognizing and adjusting to this new reality can help protect both your finances and family relationships.

Boomerang children are young adults who return home after living on their own—often due to financial, career, or personal challenges such as high housing costs, student loan debt, or job uncertainty. Their level of independence can vary. Some may rely heavily on their parents, while others may live more independently under the same roof.

More than half of adults ages 20 to 24 and almost one-third of those 25 to 29  live with their parents. Most intend for this to be short-term, whether they’re saving for a home, dealing with a job loss, managing debt, or going through a relationship change. But sometimes a temporary situation stretches longer, and it may start to affect your finances just when you want to focus on building your retirement savings. Having more people in your house can increase your grocery bill, utilities, and other expenses.

Here are three tips to support your children while keeping your own financial goals on track.

Your kids may be grown, but you still get to make the rules—after all, they’re back under your roof. Be upfront about your expectations. Talk to them about what they're responsible for paying, hours for house guests, household chores, and any other rules that keep things running smoothly. 

As comfortable as your kids may seem at home, they likely want their independence as much as you want it for them. Help them figure out what they need to save or do to move out. If saving money is the goal, you can help figure out a realistic budget and timeline. 

Of course, you love your kids and want to support them, but your retirement plan matters too. Encourage your kids to stick to their budget, hit their savings goal, and take steps toward living independently. Don’t feel guilty. You’re not being tough—you’re helping them develop confidence and life skills.

You worked hard to raise your kids, and you always want to be there and help them. But as you get closer to retirement, you may not be able to financially help your kids without affecting your own savings. Teaching your children to budget, save, and plan can give them valuable life lessons to help them become financially independent. And then you can get back to your empty nest.

Should you charge your adult child rent?

Charging rent can help your children build financial skills and protect your retirement savings. Not charging rent can offer grace during a tough time. There’s no right answer—choose what aligns with your values and helps both you and your child stay financially secure.

Will supporting your adult child delay your retirement?

Helping your adult children financially is an act of love, but it can take money away from your long-term goals. The key is finding a balance: set limits on what you can afford, encourage your child to share expenses, and adjust your spending or saving plan if needed. You want to be there for your child without sacrificing your financial future.

How do you balance helping without enabling?

Clear expectations can make all the difference. It’s absolutely okay to offer your child support, especially if they’re regrouping or starting out. But it helps to agree on things such as how long they’ll stay, what they’ll pay for, and what their responsibilities will be. This can give them a safety net without becoming a permanent fallback.

How common is it for adult kids to move home?

It’s more common than you may think. More than one-fifth of young adults  live with their parents, often due to high housing costs, student loan debt, or a challenging job market.

1  Adulting together: Parents and adult children who co-reside