Kids In Parents’ Pockets Eroding Retirement Savings (KIPPERS)

Kids in Parents’ Pockets Eroding Retirement Savings (KIPPERS)

Kids in Parents’ Pockets Eroding Retirement Savings (KIPPERS) is a slang term for adult children who continue to live with their parents after completing school and entering the workforce. Also known as boomerang children, KIPPERS can strengthen family bonds but often create financial strains that erode parents’ retirement savings and delay long-term plans.

Key takeaways

• KIPPERS are adult children living at home past school age, often into their 20s and 30s.
• Parental expenses typically rise—more food, larger housing needs, transportation and incidental costs—reducing retirement savings.
• Parents may postpone downsizing, relocating, or retiring to support children financially.
• Clear rules, cost-sharing, timelines, and help with budgeting and credit can ease the burden and promote independence.

Why more young adults live at home

Multiple economic and social factors have increased the number of adult children living with parents:
* Economic shocks: job losses during recessions (including the 2008 crisis) and the COVID-19 pandemic reduced income and savings opportunities.
High housing costs and rents in many cities make independent living unaffordable for entry-level wages.
Large student-loan balances limit young adults’ ability to cover living expenses and qualify for housing.
* Slower wage growth in many sectors means paychecks often don’t match the cost of living.

Research snapshot: surveys have shown sizable increases in young adults living with parents in recent years, with a notable spike during the COVID-19 pandemic.

Financial impacts on parents

The presence of adult children at home can affect parents’ finances in several ways:
* Increased monthly expenses (groceries, utilities, transportation, insurance).
Delayed ability to downsize to a smaller, less expensive home.
Postponed retirement or extended working years to cover the added costs.
* Reduced ability to save or invest for retirement goals, which can compound over time.

Contrast: households without children at home (e.g., dual-income, no-kids couples) typically have higher discretionary income and greater capacity to save for retirement.

Practical steps for parents

To reduce financial strain while supporting adult children’s transition to independence, parents can:
* Set clear expectations and a timeline for moving out.
Assign household responsibilities and a fair share of living costs; consider charging rent.
Require contributions toward utilities, groceries, or a savings goal to encourage financial responsibility.
Help with practical financial skills: budgeting, debt repayment strategies, and building credit history.
Discuss long-term plans openly—how living arrangements affect parents’ retirement and housing choices.

Conclusion

Having adult children at home can be rewarding, but it often comes with real financial trade-offs that affect parents’ retirement readiness. Clear boundaries, shared financial responsibilities, and practical guidance for young adults increase the likelihood of a smoother transition to independent living while protecting parents’ long-term financial security.

Sources

• Pew Research Center — reports on living arrangements for young adults
• Consumer Reports — guidance on household rules and expectations for adult children living at home