Eighty-one percent of professionals now say that they expect to support their children well into adulthood, according to new research from Wesleyan Assurance Society.
The survey reflects changing social trends with 80% of professionals expect to give their children more support than they received from their own parents, challenging the expectation that each new generation will be better off than the last.
Debts after university, an increase in the cost of living and a rise in house prices were cited as the three most common reasons for continuing to support children into adulthood. Samantha Porter, sales and marketing director at Wesleyan, commented on the findings:
“There is no doubt that life is tough for this generation of young adults. They are leaving university with significant debt and have to raise a much larger deposit on their first home compared to their parents.
“However, it's also tough on parents as they find themselves supporting their children for much longer than they may have expected. They are also facing financial challenges themselves with changes to pensions and an increased cost of living.”
She also stressed the importance of preparation and financial planning:
“It's important that people put in place a savings plan as early as they can to support both themselves and their children.“
The research also showed that professionals don’t blame a lack of financial awareness on the part of their children for this extra strain on their finances, with 63% saying that their children are more financially savvy than they were at the same age. Parental support also extended further than simple cash handouts; top of the list of support parents expected to provide was letting their children live at home rent free - even when they are working - with 71% offering this. Parents also expected to help fund postgraduate study (69%) and help with a deposit on a house (67%).
Almost a third of parents (30%) said that the total amount of financial support they gave their grown up children could end up being more than £20,000, with the average figure at £13,377. This survey highlights the importance of saving and planning early on, to secure a stable financial future and give children a helping hand as they fly the nest.