Nearly a third (29%) of parents born between 1965 and 1980 are financially supporting their adult children, new research from Just Group has found.
While the ‘Bank of Mum and Dad’ has typically been associated with major life events or purchases such as house deposits or weddings, Just Group said the majority of Generation X parents are helping their offspring with everyday costs, suggesting that the cost-of-living crisis, alongside student debts, sky-high rental and house prices, have refocused financial priorities.
More than three quarters (76%) of parents said they were providing ongoing help to cover living expenses, compared to 24% who contributed financially towards a major life event. Just shy of one in five (19%) said it was to help adult children clear their debts.
While nine in ten (87%) parents said they were happy to offer the financial support, many said it was taking its toll. More than two fifths (65%) said they feel poorer for it and 46% said they felt worried.
Stephen Lowe, group communications director at Just Group, said: “It’s hard to say no to family, especially when it comes to money, but our research lays bare the pressure placed on Generation X by financially supporting their children.
“Meeting these financial demands from family may feel like the right thing to do but for many it means less money for their own retirement fund or mortgage payments. It’s no wonder many in this age group expect to work beyond State Pension Age, are worried about the adequacy of their pension savings and are unsure if they will be able to pay off their mortgage by the time they retire. Less Generation X and more Generation Anxiety.”
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