The “Boomerang Generation” in Malaysia: A Life-Centered Approach for Families

In Malaysia today, many grown-up kids are returning to live with their parents due to rising living costs, high property prices, and uncertain career paths. This phenomenon, often called the “Boomerang Generation,” is no longer uncommon — but it brings unique financial and emotional challenges for both parents and children.

At Coreplus Advisory, we specialize in Financial Life Coaching — helping families align financial decisions with life goals and values. As a Certified Professional Retirement Coach (CPRC), I also work closely with parents who are preparing for retirement, ensuring that this “boomerang” stage does not disrupt their long-term financial security and lifestyle vision.

1. Setting the Foundation with Honest Conversations

Clear and empathetic communication is the first step. In Malaysian families, money can be a sensitive subject, but avoiding the discussion often leads to misunderstandings or silent resentment. Parents should openly share expectations: Will their child contribute to household expenses? How long will they be staying? What responsibilities will they take on at home?

Framing these conversations as part of a family’s life plan — not just a financial issue — helps both sides feel respected. It also emphasizes that moving back is temporary and purposeful, rather than indefinite.

2. “Savings Rent”: A Coaching Tool for Independence

One practical method I often recommend is the “savings rent” approach. Instead of treating it as an expense, parents can encourage their children to contribute a small monthly sum that is then set aside in a savings or investment account.

This creates dual benefits:

• Children practice financial responsibility.

• Parents can later return the funds to their children as a deposit for their first home or as seed money for a business.

As a financial life coach, I see this as more than numbers — it’s a way of teaching responsibility while reinforcing independence.

3. Preparing for Retirement Without Compromise

For parents in their 50s or 60s, this situation can feel especially stressful, because it collides with their own retirement planning. As a Certified Professional Retirement Coach, I often remind clients: supporting your children should not derail your own retirement dreams.

We explore strategies to strike a balance — ensuring retirement savings remain intact while still extending support. This may include:

• Clear limits on financial assistance.

• Involving adult children in understanding retirement planning.

• Exploring joint learning sessions where both generations understand cash flow, housing affordability, and lifestyle choices.

4. The Malaysian Lens: Culture Meets Reality

• Strong family ties: Malaysian culture values family closeness, so moving back home is often seen as natural. The key is balancing respect for tradition with forward-looking financial discipline.

• High cost of housing: With urban property prices soaring, it’s important to explore housing schemes like PR1MA or MyHome as stepping stones to independence.

• Generational learning: Instead of shielding children, involve them in budgeting, savings plans, and even family wealth transfer discussions — aligning money management with family values.

  
  

5. From Dependency to Life Transitions

The boomerang generation doesn’t have to be a setback. With structured guidance, it can be a life transition that strengthens both generations. Parents can continue building toward their retirement confidence, while children learn resilience, responsibility, and long-term financial literacy.

Key Insights for Families

Strategy	Life-Centered Outcome
Open Conversations	Builds trust, reduces conflict, and sets boundaries
Savings Rent	Encourages accountability and prepares children for independence
Retirement Balance	Protects parents’ financial future while offering support
Cultural Awareness	Respects Malaysian family values while guiding realistic decisions
Life Transitions Coaching	Turns temporary living arrangements into opportunities for growth

Final Thoughts

At Coreplus Advisory, our mission goes beyond financial numbers. We help families transform financial decisions into life achievements. For parents, this means protecting your retirement dreams while guiding your children with wisdom and structure. For the grown-up kids, it means learning how to stand on your own feet — financially and emotionally — while still honoring family values.

As a Financial Life Coach and Certified Professional Retirement Coach, I believe the boomerang generation can be a bridge — not a burden — when managed with empathy, clarity, and purpose. It is not just about surviving today’s challenges, but about creating a future where both generations thrive.