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Kids In Parents’ Pockets Eroding Retirement Savings (KIPPERS)


KIPPERS is an acronym that stands for “Kids In Parents’ Pockets Eroding Retirement Savings.” It refers to adult children who continue to live with or rely financially on their parents, which in turn may negatively impact the parents’ ability to save and prepare for their retirement. This phenomenon highlights concerns about intergenerational wealth distribution and the economic challenges faced by young adults in today’s society.


The phonetics of the keyword KIPPERS is: /ˈkɪpərz/.

Key Takeaways

  1. KIPPERS refers to adult children who continue to depend on their parents for financial support, which can ultimately erode their parents’ retirement savings.
  2. Parents supporting KIPPERS may delay or compromise their own retirement plans, making it difficult for them to have sufficient financial resources in their later years.
  3. Addressing the KIPPERS issue requires open communication between parents and their adult children, as well as encouraging financial independence through saving, budgeting, and careful planning for the future.


The term Kids In Parents’ Pockets Eroding Retirement Savings (KIPPERS) is important because it highlights a significant financial issue faced by many families today. With the rising costs of living, education, and housing, a growing number of adult children are relying on their parents for financial support, often well into adulthood. This reliance may force parents to dip into their retirement savings, potentially compromising their long-term financial stability and retirement plans. By understanding the KIPPERS phenomenon, families, policymakers, and financial advisors can work together to develop solutions to address this financial challenge, promoting sustainable financial independence for both the adult children and their parents.


KIPPERS, or “Kids In Parents’ Pockets Eroding Retirement Savings,” is a term that highlights the financial strains faced by an increasing number of parents who continue to support their adult children, thereby reducing the funds available for their retirement. The purpose behind this term is to raise awareness of the shifting demographic trends that impact both the parents and the adult children. In recent years, challenges such as increasing higher education costs, a competitive job market, and skyrocketing housing prices have led to adult children remaining dependent on their parents’ financial support. Consequently, this phenomenon has made it difficult for parents to accumulate sufficient savings, affecting their financial stability during retirement. By shedding light on the financial implications of supporting adult children, the concept of KIPPERS encourages families to engage in proactive discussions regarding financial planning and independence. Open conversations can help both parents and children to understand each other’s financial circumstances, explore alternative solutions, and create a roadmap for achieving financial self-sufficiency. For parents, this may involve consulting with financial advisors to create a retirement savings strategy that includes allocating funds for their children’s needs. Meanwhile, adult children can take advantage of resources, such as career counseling and personal finance education, to enhance their prospects for future independence. Ultimately, addressing the KIPPERS phenomenon allows families to strike a balance between supporting each other while ensuring long-term financial security.


1. Housing Crisis: In a city with a high cost of living, such as San Francisco or New York City, adult children might struggle to afford rent or secure stable employment due to the competitive job market or lack of affordable housing options. As a result, they may continue living with or financially depend on their parents, which can ultimately delay their parents’ retirement savings as they continue to accommodate their children’s expenses. 2. Boomerang Children due to Student Loan Debt: A recent college graduate may have acquired a significant amount of student loan debt and is unable to find a well-paying job in their field of study. They might have to move back in with their parents or rely on them to help cover their student loan repayments and other living expenses. This continuous financial support can erode the parents’ retirement savings over time. 3. Expensive Healthcare and Growing Adult Children’s Needs: In a situation where an adult child has health issues or disabilities that require continuous medical care, their parents might carry the responsibility of taking care of their child’s financial and medical needs. This can severely impact the parents’ ability to save for their own retirement, as the expenses associated with their child’s care continues to grow. In some cases, parents might also support their adult child’s family (spouse and grandchildren), which further strains their retirement savings.

Frequently Asked Questions(FAQ)

What does the term KIPPERS stand for?
KIPPERS stands for Kids In Parents’ Pockets Eroding Retirement Savings. It refers to the increasing trend of adult children living with their parents for longer periods, relying on their financial support, and thus reducing the parents’ ability to save for their retirement.
What are the main reasons for KIPPERS becoming more common?
There are several factors that have contributed to the rise of KIPPERS, including financial instability due to job market challenges, high student loan debt, rising housing costs, and generational shifts in societal expectations and family structures.
How do KIPPERS impact parents’ retirement savings?
KIPPERS can have a significant impact on parents’ retirement savings, as supporting adult children can divert funds that would otherwise be allocated to retirement accounts or investments. This can lead to reduced retirement funds, delaying the age of retirement, or forcing parents to rely on limited resources in their retirement years.
What can parents do to minimize the financial impact of KIPPERS on their retirement savings?
Some strategies for parents to minimize the financial impact of supporting adult children include setting clear boundaries for financial support, encouraging financial independence through coaching on budgeting and saving, setting clear expectations for contributions to household expenses, and having open conversations about long-term financial goals.
How can adult children work towards financial independence and reduce their reliance on parents?
Adult children can take several steps towards financial independence, such as:- Developing a personal budget to track earnings and expenses- Actively seeking employment opportunities and career growth- Reducing debt, including student loans, by developing a repayment plan- Saving for emergencies and future housing expenses- Seeking financial advice or education to develop long-term financial goals
Are there any long-term societal implications of the KIPPERS trend?
The long-term societal implications of KIPPERS may include added financial stress on social security systems due to delayed retirements, the potential for intergenerational wealth disparities, and shifts in family structures and dynamics as older generations increasingly provide support for younger generations.

Related Finance Terms

  • Boomerang Generation
  • Empty Nest Syndrome
  • Financial Dependence
  • Retirement Planning
  • Millennial Life Choices

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