Boomers base spending decisions on boomerang kids
Posted November 28, 2011 8:53 am.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – A growing number of parents from the baby boom generation are putting off their retirement because of their boomerang kids. That’s according to the TD Canada Trust Boomer Buyers report.
The survey found one-third of boomers plan to downsize once they hit retirement, but their adult children who live at home into their 20s and even 30s are the main reason those plans get delayed.
Around 17 per cent of that one-third admit they’ve had to put off downsizing because of their children. Twelve per cent continue to stay in their homes because their adult children still live with them.
The report also found 40 per cent of boomers who plan to retire in the next three years have a mortgage even though two-thirds of them expect to retire without one.
“There are repayment strategies that can help you pay down your mortgage faster such as increasing payment amounts or frequency and supplementing regular payments with lump-sum amounts. If you have adult children living at home, consider asking them to help with the mortgage payments. If they are living with you to save money, their contribution to your household finances would probably still be less than they would pay in rent elsewhere,” says TD’s Director of Mortgage Advice Farhaneh Haque.
Adult children living at home has been a trend over the last couple of years, mainly due to the high cost of education and the cost of living increasing.
