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Kids In Parents' Pockets Eroding Retirement Savings (KIPPERS) is a word used to characterize adult children who continue to depend on their parents for financial support, which can have a negative influence on their parents' retirement savings.
This phenomenon is growing more prevalent as young adults deal with financial difficulties like excessive school debt and a lack of employment possibilities, which can make it challenging for them to reach financial independence. As a result, many parents are forced to provide for their adult children financially far into their 20s, 30s, and even beyond.
Although the word "KIPPERS" originated in the United Kingdom, the worldwide trend is evident in many nations, including the United States. The problem is sometimes viewed as putting stress on parents' retirement funds since they may need to put in more hours to make up for the financial support they give to their adult offspring.
Financial experts advise parents to help their adult children to become financially independent by having open and honest conversations with them about their financial condition. To safeguard their own retirement resources, they could also think about placing restrictions and limits on the amount of financial assistance they give to their adult offspring.
