It’s Official: More Generations Living Together
The Pew Research Center has officially certified a demographic fact many of us already know: the number of homes where several generations co-exist has increased over the last three decades.
In what Pew calls a “significant trend reversal,” the survey data found that a record 49 million Americans, or 16.1% of the total U.S. population, lived in a family household that contained at least two adult generations or a grandparent and at least one other generation.
Don’t only blame grandma for coming back from Florida. The largest group moving back home is young adults age 25 to 34, and in that group more of our sons than our daughters.
One key reason, beyond the obvious recession and poor job market, is the rise in age for first marriage. Young men typically marry at age 28 and young women 26, which is five years older than it was in 1970.
The survey notes,
“There are more unmarried 20-somethings in the population, many of whom consider their childhood home to be an attractive living situation, especially when a bad economy makes it difficult for them to find jobs or launch careers.”
An inheritance for 2055?
Most of us will probably not be around in 2055 but our adult children will, and they will most likely be thinking of retirement. Here’s an interesting idea for parents who want to leave children an inheritance that will help them plan in their “golden” years.
CBS Moneywatch.com calls it a “Kid Roth: How Parents Can Raise a Millionaire.”
Basically parents can make Roth IRA contributions for adult children as long as they have earned income. How does that grow to $1 million? The article explains:
Make a deal with your working 25-year old today that you will give them $5,000 a year until they are age 30 (for a total parental contribution of $25,000) that they leave invested in a Roth IRA until age 75 and they could have more than a million dollars set aside for retirement, based on your nice parental assist.