How old is too old to live at home?
Bottom Line: Times change, people change, perceptions change as do expectations. It’s weird starting to feel old as a Gen Xer. But that’s how this next piece of research makes me feel. I’ll explain in a moment but first the question...
- What is the age where there’s a stigma attached to living at home?
This was the question posed by TD Ameritrade. So, what do you think? Have your answer? Was it 28?
28 was the most common answer across all generations. From Gen Z to parents. I’m not here to judge and this story is probably another reminder about why God didn’t think I should be a parent. But wow, that one surprised me a little. I’m not sure which I’m more surprised by. Kids that aren’t concerned about leaving the nest until they’re nearly in their 30’s or parents that’d tolerate them that long. But once again – these are the averages against all generations, so I realize that I’m the outlier here.
Not surprisingly, financial considerations are at the top of the list of reasons why adult kids are willing to stay at home until 28ish before thinking it's time to need to move on. But if I’m going to offer up some concern it’s this. If you’re the parent and you are financially set, great – no worries for you. The problem we’ve been seeing is that parents are sacrificing saving and investing for their future to continue to provide for their adult kids. A study last year from Merrill Lynch found that parents spend twice as much on adult children living at home as they do saving and investing for themselves. All told 79% of parents regularly provide for their adult children. Stigma or no stigma, this has become the top catalyst for retirement shortfalls. Food for thought if you’re in this position. Your kids have longer to work, earn, save and invest than you do. Making them fend for themselves at say, 27 – probably won’t kill them. But if you don’t look after your own interests as well – it just might eventually kill you.