Over 4.4 million adults financially supported by their parents
While you are considered an adult at 21 years old it seems many still turn to mum and dad for financial help. Over 4.4 million adults in the UK are receiving financial support from their parents, according to a study from protection specialist LV=.
British parents 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. On top of this, 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.
Parents expect to foot the bill well into their kid's adulthood, as it isn't until age 38 that they expect their children to be financially independent. Meanwhile, over a quarter (28%) of parents currently supporting their kids expect to always provide financial assistance to their children.
Grown-ups who haven't flown the nest
Of the 4.4 million adults in the UK receiving financial support from their parents, 1.6 million still live at home. Of these over half (58%) are in their twenties, a third (29%) are in their thirties and one in ten (12%) are over 40.
The average age of a first-time buyer in the UK today is 38, and this is predicted to rise to 41 by the year 2025. So it is perhaps not surprising a third (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. Nearly one in five (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. One in ten (10%) say their children are living at home because they have a lot of debt that they need help paying off.
Parents feeling the financial strain
Nearly half of all parents who support their grown up children (42%) 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.
A significant financial strain is being put on parents supporting their adult children, with nearly half (44%) saying they have been forced to raid their savings, and 10% having spent all of their savings.
Mark Jones, LV= Head of Protection, said: "Bringing up a child is expensive and for millions the cost doesn't stop when your child turns 21. 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."