Nearly half of parents fear they need to delay retirement plans to financially support their adult children… well into their 20s

Nearly half of parents fear they must delay plans to retire in order to financially support their children, new exclusive data for This is Money shows.

With more young people leaving the family home later than previous generations, parents expect their children to move out around the age of 26.

Meanwhile, boomers typically moved out of their homes between the ages of 18 and 21.

This shift is largely down to the younger generation facing higher housing costs and inflation.

Nearly a quarter of the 2,000 parents polled with kids under 18 by investment platform XTB say they feel unprepared for the cost of supporting their children into adulthood.

In addition, 51 per cent are worried they won’t be able to contribute towards their child’s university education or living costs if they were to attend.

Conversely, four in five put money aside for their children, with plans to help fund future costs such as getting on the property ladder or supporting key life events like weddings.

Kathleen Brooks, research director at XTB, said: ‘Supporting children into adulthood is becoming an increasingly long-term financial commitment.

‘And many parents are recognising the importance of starting early and building savings gradually over time to ease that pressure.

‘While future costs can feel daunting, even small, regular contributions made over a long period can make a meaningful difference and help families be more financially prepared for the milestones ahead.’

Cost of university bites hard

Based on the Bank of England’s inflation targets, analysts from the platform believe the total cost of a three-year university degree in the UK could exceed £91,000 by 2040, increasing from around £23,000 a year to more than £30,000 annually.

For those living and studying in London, the total cost could approach £119,000, with yearly costs rising from around £30,000 to nearly £40,000.

The study of parents found the main reasons they feel underprepared are everyday living costs making it difficult to save (64 per cent), future costs feeling too high (40 per cent) and having more than one child to plan for (39 per cent).

In total, 42 per cent regularly put money aside, 33 per cent do so occasionally and five per cent have put in a one-off amount.

While 49 per cent have raised less than £5,000 for their child reaching adulthood.

On average, parents have £5,508 saved for their child heading to university.

With parents wanting to contribute towards accommodation costs (47 per cent), tuition fees (41 per cent) and everyday living expenses (33 per cent) the most.

And 82 per cent agreed supporting children into adulthood has become more of a longer-term financial commitment for the current generation than previous, with parents now expecting their children to move out at an average age of 26.

The research carried out through OnePoll found the most common method to put money aside for their youngsters is via a children’s savings account (39 per cent), a Junior cash Isa (24 per cent) and a general savings account (22 per cent).

One in five respondents said saving would be easier if they understood how to invest and had a better understanding of the different savings options available.

Kathleen Brooks added: ‘Many parents are understandably focused on setting money aside, but it’s also important to think about how those savings are working overtime.

‘The earlier families start planning, the more opportunity they may have to build a financial foundation that can support their children through major life moments, whether that’s university, buying a first home or taking other important next steps into adulthood.

‘Creating a financial plan early can provide greater flexibility when those major life milestones eventually arrive.’