With the latest figures showing that more than a quarter of adults between 20-34 are still living at home, and a fifth (19%) of students are opting to stay at home while studying, the ‘Boomerang Kid’ phenomenon is increasingly morphing into a ‘Never Fledged Generation’ – those for whom the high cost of living and accommodation means they are unable to fly the nest even for a short time.
To cope with the additional cost ofhaving their adult children living at home for longer, the report finds that Full Nesters are making greater financial sacrifices than Empty Nesters across the board, with some putting their own financial future at risk. One in three (31%) have cut spending on vital items such as groceries, compared to 21% of empty nesters, while 16% have needed to take out a loan, spent on credit cards, or gone overdrawn, against 7% of empty nesters. A third (30%) of Full Nesters report they are contributing less to their savings, while more than one in four (28%) are spending their savings to meet the cost of everyday living.
In contrast to Empty Nesters, Full Nesters are prioritising their family in the here and now, often at the expense of their future plans. Almost half (44%) say their current focus is providing for their family, compared to 23% of Empty Nesters, while a third of Full Nesters (34%) are focused on paying off debt, compared to 17% of Empty Nesters. Moreover, many Full Nesters are conscious that this could be compromising plans for later life, with a quarter (24%) saying they wish they were able to focus more on preparing for the future.
On top of covering the cost of having adult children under their roof, the report finds many Full Nesters are providing additional financial support to their offspring. Two thirds (62%) of Full Nesters say they are financially supporting their children, compared to just 37% of Empty Nesters, with 32% of Full Nesters not expecting to get the money back. Despite this, the majority (63%) are happy to lend money to help their family members out.
Carolyn Fairbairn, Chair of the Centre for the Modern Family, said:
“This research highlights the very real pressures being felt by Full Nesters as a result of the rapid emergence of the ‘Never Fledged Generation’. With many parents raiding their savings or putting their retirement plans on hold to cover the cost of their adult children still living under their roof, we need to ask ourselves what the longer term implications of these trends are and what this means for the financial well-being of these parents.
“As a society, we must make sure that any interventions geared towards helping young adults take their first independent steps in life do not take for granted both the support and sacrifices of their parents. For while every Full Nester hopes that their ‘Never Fledged’ offspring will eventually spread their wings and fly, they might find that on their departure they are faced not only with a bare and empty nest, but also radically diminished nest egg with which to secure their financial future.”
