35% of grown up children have returned to the family home,= since the beginning of the year, Canada Life has revealed.
The financial services firm said that this is increasing parents’ monthly outgoings by £425 a month on average.
Canada Life said that 2020 has seen 7.2m people with changed living circumstances, of which 10% can be attributed directly to Covid-19. 26% of parents have ‘welcomed back’ their grown up children.
83% are happy with their new circumstances, but 27% of parents would like their children to move out and 24% are worried they might stay longer than anticipated.
Changes to work patterns (24%) and wanting to wait out lockdown together (22%) – or with a garden (19%) were among the biggest drivers for these changes. Only 26% said their change in living circumstances was already planned pre-Covid.
Parents who have welcomed back grown up children are spending £425 more on average per month, whereas those who have moved back in with their parents have typically reduced their monthly outgoings by £714. But, while only 23% of parents are asking their kids to contribute to household costs, grown up children appear to be paying their way, with more than three quarters (78%) contributing to rent (£264), food costs (£390) and monthly bills (£390). However, 25% of parents are still worried about the financial implications of their children being at home.
In addition to these financial challenges, parents have made other sacrifices for their children this year; 31% have converted a room into a spare room for their child to stay in, 26% have bought new furniture, 18% even gave up their own bedroom and a further 12% gave up their home office.
Parents who have welcomed their children back home are split on their children’s location, with 23% wanting to move closer, but the same number considering moving further afield.
Alice Watson, head of marketing, insurance, Canada Life, said: “For many, the events of the last few months have brought families back together again and challenged the multi-generational norms to which we’ve become accustomed. Lockdown has been a once-in-a-lifetime opportunity to live with family members again for some, but others are keen to return to normality. However, the reality is that we may see the impact of Covid-19 affecting our living situations for much longer than anticipated.
“While younger generations have had an opportunity to save money during lockdown, those parents welcoming back grown up children have been hit with financial pressures – including increased utility and food bills – which could have a knock-on effect on their retirement income. For those worried about the financial implications of lockdown, speaking with a financial adviser is a sensible first step. These professionals can highlight how property wealth could be used to meet the evolving needs of today’s retirees, and help customers find the best-suited product for their individual circumstances.”
