Parents across the UK are increasingly expecting to provide financial support for their children well into their mid-twenties, with a new survey revealing the average age for anticipated independence is 26.
This extended reliance is even prompting some families to consider moving to larger homes, with one in 14 (7%) parents planning to upsize specifically so their adult children can continue living with them.
The research, commissioned by savings and investments firm M&G, highlights a significant shift in family financial dynamics.
Fewer than one in 10 (9%) parents believe their children will be self-sufficient by 21, while nearly a fifth (18%) anticipate the “bank of mum and dad” remaining open into their children’s thirties.
Beyond day-to-day living, a quarter (24%) of parents expect to contribute to a deposit for their child’s first home, and a further 14% foresee long-term assistance with rent or mortgage payments.
This prolonged financial commitment is reshaping parents’ own financial futures, potentially impacting their retirement plans. Almost two-thirds (64%) are prepared to make lifestyle adjustments, with 30% cutting back on everyday spending and 31% reducing holidays or luxury purchases.
Looking further ahead, one in seven (14%) intend to delay their retirement to maintain support, and 11% are considering taking on an additional job.
The ripple effect extends to the younger generation, with two-fifths (40%) of teenagers surveyed admitting they expect to postpone pension saving until their thirties.
This delay risks them saving too little, too late for their own retirement. The findings are based on a survey conducted by Opinium in April, involving 1,000 parents of 16 to 18-year-olds and an equal number of young people in the same age bracket across the UK.
Matthew Ings, a chartered financial planner at M&G, warned that while “supporting children into their mid-20s is becoming the norm, it can come at a cost if it isn’t planned for.”
He added: “Many parents are quietly absorbing that support over time, often at the expense of their own retirement savings. At the same time, if financial independence is delayed, there’s a real risk that pension saving is delayed too.”
Mr Ings emphasised the need to “step back and take stock” as “financial independence is no longer a clear-cut milestone”, suggesting a regular pension health check could help families “understand the trade-offs they are making, stay on track, and balance parents supporting their children today with protecting their own financial future.”
M&G, which is exploring intergenerational financial conversations as part of its “reframing retirement” campaign, stressed the importance of reassessing long-term financial planning in light of these evolving family dynamics.
