One in 14 parents are even planning to move to a bigger home so their children can continue living with them into adulthood
If you’re the parent of a teenager, chances are you’re already bracing yourself for years of financial support ahead – and new research suggests most parents expect to be helping their children out until age 26.
Of those surveyed, one in 14 (7 per cent) parents are actually planning to move to a larger home so their adult children can carry on living with them – meaning downsizing to release property equity simply isn’t on the cards for many families.
Savings and investments provider M&G, which commissioned the study, warned that this kind of prolonged financial support could force some families to reassess their long-term financial plans. The research, carried out by Opinium, surveyed 1,000 parents with children aged 16 to 18 across the UK in April, as well as 1,000 young people in the same age group.
Fewer than one in 10 (9 per cent) parents think their children will be financially independent by the age of 21, while nearly a fifth (18 per cent) think they will still be dipping into their pockets once their children reach their 30s.
When it comes to getting on the housing ladder, almost a quarter (24 per cent) of parents expect to help with a deposit for their child’s first home, with a further 14 per cent anticipating longer-term help towards rent or mortgage payments.
It’s not just parents feeling the pinch, either. Two-fifths (40 per cent) of teenagers surveyed said they expect to put off pension contributions until their 30s – raising real concerns that delayed financial independence could mean a shortfall in retirement savings down the line.
For parents, the impact on their own finances is already being felt. Almost two-thirds (64 per cent) said they expect to make lifestyle changes to keep supporting their children, with 30 per cent cutting back on everyday spending and 31 per cent reining in holidays or luxuries.
One in seven (14 per cent) are even considering delaying their own retirement, while 11 per cent are thinking about taking on a second job to make ends meet.
M&G has suggested that a routine pension health check could be a useful way for people to take stock of where they stand.
Matthew Ings, a chartered financial planner at M&G, said: “Supporting children into their mid-20s is becoming the norm, but it can come at a cost if it isn’t planned for. Many parents are quietly absorbing that support over time, often at the expense of their own retirement savings.”
He added: “At the same time, if financial independence is delayed, there’s a real risk that pension saving is delayed too. Financial independence is no longer a clear-cut milestone, and that makes it more important to step back and take stock. A pension health check can help people understand the trade-offs they are making, stay on track, and balance parents supporting their children today with protecting their own financial future.”
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