More than 4 million school-age children in the U.S. live in households with a senior, according to KFF. As Americans have children later in life, the challenge of retiring before kids reach adulthood is becoming more common.
“It’s a topic that’s going to come up more and more,” said Patrick Huey, a CFP in Naples, Florida.
Retiring with kids in school can be financially perilous. Four years of college costs over $150,000 on average, and health insurance for a child runs between $300 and $400 a month. Retirees may also face penalties for tapping retirement savings early.
One potential lifeline: Social Security benefits for children. A child can receive up to half of a parent’s benefit, typically until age 18.
“The greatest gift you can give your kids is not moving in with them,” Huey said.