More than a third of parents spend up to £5,000 a year on their adult children, according to research by Insight Investment.
The survey of 2,439 people suggests while parents should be focusing on their own future retirement, a significant proportion still find themselves providing a financial safety net to their grown-up offspring.
Almost two-thirds (63%) of 25-34 year-olds and nearly half (46%) of 35-44 year-olds admit to relying on familial financial support in some way.
Insight Investment says soaring house prices and mounting student debt are, undoubtedly, key contributors to increasing financial pressures on today’s parents.
Younger parents expect to continue supporting their offspring financially, particularly with things such as university education (68%) and helping them to get a foot on the housing ladder (49%).
But when it comes to planning for how long they may have to financially support their children, today’s younger parents are in the dark, as 20% of parents with children under 16 expect to be supporting them only up to the age of 18 or 21.
Gordon Phillips, head of retail at Insight Investment, says: “At a time when empty nesters should be prioritising their own financial independence, many are finding that pressures on the parental purse-strings are eating into their potential retirement pot. Unfortunately, increasing financial pressures such as soaring house prices and mounting student debt are unlikely to abate any time soon so empty nesters of the future should take heed and plan ahead.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7968 4554 or email [email protected].IFAonline
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