Boomerang kids trend is continuing in 2025, harming parents' retirement plans

American parents are still facing weakened financial security as a result of their adult children returning home.

The trend of ‘boomerang kids’ has been highlighted over several years in an annual survey from Thrivent, but while some parts of the picture have improved, some have worsened, and the underlying view is of younger generations struggling with the cost of living.

This year, 46% of parents with children aged 18-35 said they have moved back home, in line with the 2024 report. But when asked about the reasons for the return, housing was less of an issue than last year at 32% compared with 50% in 2024, although it remains the top issue.

However, inflation is a challenge with 30% of respondents citing increasing prices of essentials and making this the second-highest problem. A personal event such as divorce or separation is third at 20%.

While these financial challenges will ease for the boomerang kids, the damage it may have done to their parents’ long-term financial security may be harder to overcome.

Almost four in ten respondents (38%) said that their retirement or other long-term financial goals have been impacted by the children returning home, similar to last year (37%) but more than double the 2023 result (16%).

It’s also impacting parents’ short-term financial goals such as vacations (39%), ability to pay off debt (34%), saving for future care needs/medical procedures (21%), and supporting aging parents (8%); 30% said it was impacting none of these.

But boomerang kids may not realise how they are affecting their parents’ finances with 60% saying it has not been shared with them.

“Taking care of your adult children is an extremely caring act of love, but it also requires a delicate balance between a desire to help and your own financial planning,” said Thrivent Financial Advisor Alex Gonzalez, who helped his own boomerang child move out on their own over the past year. “I know firsthand the stress this can put on families, which is why I’m a huge advocate for long-term financial planning with a financial advisor. With the right advice and planning, parents can develop a strategy for helping their adult children without jeopardizing their financial goals.”