As the cost-of-living crisis continues to bite, Aldermore's latest annual Savings Tracker1, a survey of 4,000 UK adults, reveals that one in three parents (29%) has dipped into their own long-term savings pot to provide financial support for their now grown up children.
More than a third (36%) of parents worry that their older children are not actually saving enough. So much so that to help them build a savings pot, nearly one out of six UK parents (15%) is giving their kids money regularly to put away.
Parents are worried about their children being able to get on the property ladder, a key step on the road to financial freedom. Almost a third (29%) have helped or are planning to help their adult children with the deposit for their first home.
Parents are also thinking further ahead with many considering how they will pass on their money to their children. One out of five (20%) have or plan to hand over their savings to their adult children while they’re alive in order to avoid tax losses. However, at the other end of the scale, one in ten (10%) parents say their savings are instead going toward helping their child to manage today’s rising cost of living.
Ewan Edwards, head of savings, Aldermore Bank comments: “The bank of mum and dad may be feeling the pinch given the current economic climate but they are still eager to lend a hand to their loved ones. Our research highlights that parents are prioritising their grown up children’s finances, perhaps over their own.
“It’s concerning that a quarter of parents are having to dip into their long-term savings to support their adult children. While it’s natural to want to help your loved ones, make sure you keep enough money aside so that you have an adequate financial safety net, and can work towards your own financial goals.”
**Ends**
1The figures are sourced from a nationally representative survey conducted by Opinium Research with a sample of 4,000 with UK adults from 22nd December and 6th January 2023.
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