Parents Plan To Support Adult Kids Until 26, Survey Reveals

Financial Support Stretched Until Mid-20s

If you’re a parent with teenagers, brace yourself for years of financial backing – a new survey finds that most parents anticipate supporting their adult children until they hit 26. Conducted by Opinium for savings and investments provider M&G, the study surveyed 1,000 UK parents and their 16- to 18-year-olds in April.

Changing Family Dynamics

Interestingly, about 7% of parents are considering upsizing their homes to ensure their adult children can continue living at home. This decision highlights a shift in financial priorities, as many families are putting off downsizing or releasing property equity to facilitate their children's extended stay.

Financial Repercussions

Such prolonged support means parents are revisiting their financial strategies. Matthew Ings from M&G advises: "Supporting children into their mid-20s is becoming the norm, but it can come at a cost if it isn't planned for." He stresses the importance of pension health checks to balance present support with future stability.

Parental Sacrifices and Expectations

The research indicates that fewer than 1 in 10 parents believe their children will be financially independent by 21. Alarmingly, 18% think they’ll be financially assisting their offspring into their 30s. Almost a quarter (24%) are ready to help with a house deposit, and 14% foresee long-term help with rent or mortgage payments.

Impact on Parents' Finances

Parents are feeling the squeeze. Nearly two-thirds anticipate lifestyle changes to sustain their children, with 30% cutting daily costs and 31% limiting holidays. As Ings notes, "Financial independence is no longer a clear-cut milestone." With financial independence delayed, there’s a risk of inadequate retirement savings.

Looking Ahead: Financial Planning

For today’s parents, the financial impact is significant. One in seven is considering postponing retirement, and 11% are thinking about a second job. M&G suggests regular pension health checks to navigate these challenges effectively, ensuring a balance between supporting children now and securing their own future.