Parents expect to support their adult children financially until age 26, according to a new survey. One in 14 parents are even planning to move to a larger home so their children can continue living with them into adulthood.
Key findings from the survey
The research, commissioned by savings and investments provider M&G and conducted by Opinium, surveyed 1,000 parents with children aged 16 to 18 across the UK, as well as 1,000 young people in the same age group.
Fewer than one in 10 (9%) parents believe their children will be financially independent by age 21, while nearly a fifth (18%) expect to still be providing financial support once their children reach their 30s.
Impact on parents' finances
Almost two-thirds (64%) of parents said they expect to make lifestyle changes to continue supporting their children. Specifically:
- 30% plan to cut back on everyday spending
- 31% will reduce spending on holidays or luxuries
- 14% are considering delaying their retirement
- 11% are thinking about taking on a second job
Regarding housing, almost a quarter (24%) of parents expect to help with a deposit for their child's first home, and 14% anticipate longer-term help with rent or mortgage payments.
Impact on young people
Two-fifths (40%) of teenagers surveyed said they expect to delay pension contributions until their 30s, raising concerns about delayed financial independence and potential shortfalls in retirement savings.
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: "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."
