According to a recent study by Fidelity, and the Stanford Center on Longevity, three quarters of boomer parents claim that they are still financially supporting their (adult) children in some way.
And although much of this support is accounted for in arms-length financial support, such as loans, 1 in 9 boomers said that at least one of their children “returned to the nest” at some point in the last year.
This has given rise to the term “boomerang generation”—many adult children cannot afford to live on their own, and end up returning to live with their parents.
The boomerang generation is costing boomers money: 76% of boomers said that caring for their adult children increased their living expenses, while 68% said they were more stressed, and 53% said that they were less happy.
What’s Causing The Boomerang Generation To Come Home?
Most adults don’t want to live with their parents, but they have no choice.
Offshoring to places like China and Mexico has distorted America’s labor market—if there are more high paying jobs near the top, but also more unemployed people, and people working low-end service jobs.
Essentially, many of the middle class job opportunities available to ordinary people, who might not have the aptitude to pursue advanced education, disappeared.
It’s why the middle class is disappearing.
Basically, many people just can’t make it in today’s economy—and it’s not their fault.
Not everyone can be a designer, a programmer, or a CEO.
It’s important we don’t lose sight of that fact.