Over 4.4 million British adults are getting financial support from their parents, according to a new survey from LV=.
Parents in the UK are regularly helping to pay towards their grown-up children’s basic living costs including bills and rent, at an average of £2,103 per year or £175 per month for each child, LV= found.
Furthermore, parents are spending an additional £9,476 on average per child on big ticket items over the course of their adult lifetimes, such as helping to get them on the housing ladder, further education, holidays, or paying towards a wedding.
It isn’t until age 38 that they expect their children to be financially independent. Meanwhile, 28% of parents currently supporting their kids expect to always provide financial assistance to their children.
Of the 4.4 million adults in the UK receiving financial support from their parents, 1.6 million still live at home. 58% are in their twenties, 29% are in their thirties and 12% are over 40.
33% of parents with adult children living at home cite their children not being able to get onto the property ladder, and not wanting to rent, as the reason. 18% say their children are living at home because they have not been able to get a suitable job since leaving education, and 12% say their adult children are home again following the breakup of a relationship. 10% say their children are living at home because they have a lot of debt that they need help paying off.
42% of all parents who support their grown up children admit they struggle financially as a result, but say they are happy to do so because they are their children. A further 12% say they are unhappy about the financial support they offer as they feel like they don’t have a choice.
44% of parents say they have been forced to raid their savings, and 10% having spent all of their savings, in order to support their children.
“Bringing up a child is expensive and for millions the cost doesn’t stop when your child turns 21,” said Mark Jones, LV= head of protection. “In fact the bank of mum and dad continues to foot the bill well into adulthood.
“Young people are leaving university with large debts, youth unemployment is high and property is unaffordable for many. Many parents won’t have considered how their kids would continue to cope if they could no longer support them financially.
“Discussing their financial situation with a professional adviser and looking at all the options available, including life cover and income protection, making sure policies are put in trust for children where appropriate, and having an up-to-date will in place, can provide invaluable financial security for families.”