With two thirds of men (66%) previously admitting to receiving financial help from their parents compared to half of women1 (50%), new research2 from pensions advice specialist, Portafina, reveals the difference in attitudes and behaviours between men and women* when it comes to leaving home and what impact this is having on their parents.
Looking at when adult children expect to leave their family home, on average, women expect to move out aged 22, compared to an average age of 26 for men. Almost a fifth of women (19%) expected to leave home as young as 18, compared to just 6% of men. On top of this, more than three quarters (77%) of women expect to have moved out of their parent’s house aged 25 compared to half (55%) of men.
Considering that each month parents are forking out on average £414 to cover the cost of their stay at home child (amounting to £4,972 per year), sons expecting to remain in the family home four years longer than daughters could cost their parents an extra £19,888 overall.
Delving into the main reason’s adults are staying at home for longer, men claimed to feel more affected by rising house prices, with nearly half (45%) stating this as their main reason for staying at home compared to just 30% of women.
When it comes to adult children financially preparing to move out, only one in five (19%) men said they were living at home in order to save up for a house deposit compared to over a quarter (28%) of women. Which could be why women are less likely to offer to pay rent while they are still at home (31%, versus 43% of men).
Looking at just how parents are finding the means to financially support a stay at home child, the new research shows that mums are more likely to delve into their pension pot to cover the cost (38%, vs 19% of dads). With double the number of dads claiming they feel more financially prepared should their adult children need to live at home.
With a fifth of parents (20%) turning down the offer of financial support from their children, should parents be more selfish when it comes to their own finances?
Jamie Smith-Thompson, Managing Director at Portafina, said: “It’s only natural for parents to have good intentions of helping adult children who remain in the family home. And I’ve no doubt that children who are welcomed back home after university or who live at home while they save for a house deposit are thankful. Even if they don’t always show it!
“Talking about money with loved ones can feel awkward. So, if your finances are being affected by children living at home longer than expected, be upfront about the financial support you expect from them. After all, learning about managing money, paying rent and prioritising bills will help prepare them for when the time comes to run their own home.
“As children get older, you shouldn’t feel guilty about being a little more me, myself and I with your money. It’s important to still do the things you want. Worryingly, the research shows some parents are working longer or altering their lifestyle to cover the extra costs. And one in eight have put off downsizing their home to accommodate an adult child or children living at home.
“While pensions do offer more flexibility than ever before for parents aged 55 and over, using the money to help family could leave you with less to live on when you need it. A parent withdrawing £200 a month from a pension pot between the age of 55 and 60, to help with the costs of an adult child living at home, could be left nearly £14,000** worse off compared to leaving the money invested in their pension.
“If you’re considering dipping into your pension to make ends meet, always speak with a regulated financial adviser first. You could face an expensive tax bill if you take out more than 25% of your pot. And it’s important to understand the financial implications using your pension cash now, rather than in the future, will have on your retirement plans.”
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