I was visiting with a blogging friend the other day and the conversation turned to boomerang-kids. This seems to be a conversation I am having frequently. I suppose it is on my mind. The question is How does the extra adult in the house come into play when it comes to retirement saving?
Can people catch the boomerang before it lands in their front yard? Some people are not happy living with adult children and some are. If they are not, they need to be looking at a way to prevent their children from boomeranging.
The blogging friend's wife and I started the conversation with boomerangs and ended it with downsizing in retirement. We looked at each other in amazement as it occurred to both of us at the same time that many mid-life and retired people are downsizing so that, when the children need help, coming home to live will not be a choice. They know it would not be a happy situation for them. Interesting huh?
Could it be people are saving enough money by downsizing so they are able to help children in trouble but not make them dependent on them totally? The family remains on good terms and the children continue to mature and be self reliant. Helping pay part of the grown child's rent is a lot different than them coming home to live rent-free. The child could still be responsible for most of the cost and be forced to live within their means.
So, give it some thought. If a person is in a position where saving during those last few years of work is very important to their retirement, supporting an adult child can break the bank. There really should be a way to do both. It could be that downsizing is one strategy that should be considered.
What do your think?