Boomerang Generation Derailing Parents’ Retirement Goals

Boomers attempting to protect their children from financial stress may be putting their own retirement goals at risk. 

The latest Investor Index survey from TD Ameritrade found that 76% of Baby Boomers would feel obligated to support their adult children if asked; 57% even reported that they would be willing to provide for their children, an act the report calls “financial coddling,” at the expense of their own retirement funds. More than half (54%) have had adult children, ages 25 and older, live with them for three months or longer; 42% of these admitted that taking their children back in had a negative impact on their finances. 

Many of those receiving financial aid from their parents are members of Generation Y, a group now often recognized as the “Boomerang” Generation. Twenty-three percent of these young adults reported moving back home for a period of three months or longer after they considered themselves “financially independent.” Another 41% said they receive financial support post-college, including money for food, rent, and discretionary bills like cell phones. 

Though this year marks the first round of Boomers turning 65, many will not be retiring; 55% now plan to retire later than they originally expected. Seventeen percent of this group site financially supporting adult children or other relatives as the reason.

“For Boomers, and others, who have fallen away from their retirement plans, it’s important to remember that it’s never too late to turn things around,” said Lule Demmissie, managing director of investment products and retirement at TD Ameritrade. “That may mean you have to adjust your expectations, work a little longer or think of other means of support that you never considered before. But it doesn’t mean that it’s too late to start.” 

For more information on TD Ameritrade’s Annual Investor Index survey series, visit