♦ Almost one million adults in the UK are parensioners: people having children in their 40s, 50s and 60s who will reach retirement age while financially supporting young offspring
♦ 49 and 43 are now widely considered to be the ‘cut-off' ages for men and women to have children
♦ 33% of male parensioners were between 50 and 70 when they became fathers. 6% of women were over 45
♦ Current average retirement savings of a parensioner would leave them over £2000 short per year compared to the average annual cost of raising a child
Halle Berry, Steve Martin, Elton John, Susan Sarandon, Michael Douglas, Sarah Jessica Parker and almost one million people in the UK can, from today, officially class themselves as ‘parensioners'. They're the rapidly growing group of men and women having children in their 40s, 50s, 60s and beyond, and will be of retirement age when they are still financially supporting their young offspring.
The rise of the parensioners was discovered during a new study into parenting trends by retirement specialist LV=. In the twenty years between 1992 and 2012, the number of people having children after the age of 40 (45 for men) has risen by 298% for women and 149% for men.
Looking at the ages when this group became parensioners, one in eight (12% or 65,022) gents were over 60, while a quarter (24% or 135,508) were in their 50s when their last child was born. For the ladies, while the majority (94% or 347,126) were between 40 and 44 years of age, one in 20 (6% 18,781) were over 45 when they last welcomed new life into their world.
Never too old?
The results of the research also point to a marked attitudinal change in what the nation now believes is the acceptable ‘cut-off age' for having children. For today's chaps the acceptable last chance saloon for parenthood is now considered to be 49 on average, with almost a quarter (22%) saying 55 is the acceptable cut off point for men. Understandably the age drops for women, with the acceptable cut-off point for having a baby cited as 43 years of age. Today's average ages are both seven years later than the perceived acceptable cut-off age for the previous generation having children.
The top reasons people have become parensioners include:
1. Wanting to have one more child before they were "too old" (32%)
2. Having a child later that they hoped after trying to conceive for some time (24%)
3. Not meeting the right person to have a child with until they were older (20%)
4. The pregnancy was unplanned (13%)
5. The feeling that they were not ready to be a parent at a younger age (13%)
6. The desire to enjoy the freedom of not having a child for as long as possible (10%)
7. Advancements in IVF (7%)
8. The financial demands of modern life, such as getting on the property ladder first (7%)
9. The desire to establish a successful career before starting a family (6%)
The power of the celebrity
In this celebrity-obsessed world, high-profile cases of parensionhood have also influenced when some everyday men and women choose to become parents. One in fourteen (7%) admitted they were directly influenced to have children later in life by the likes of Elton John (65), Sir Paul McCartney (70), Rod Stewart (68), Madonna (54), Steve Martin (67) and the fictional portrayals of parensioners in TV shows such as ‘Modern Family'.
However, while ‘it's no sacrifice' for Elton John and co., whose kids will grow up in the lap of luxury, the everyday parensioners of Britain face a very real crisis: how to fund their fast-approaching retirement while financially supporting a young family.
Stretching the finances
The potential financial strains of parensionhood are thrust into the light when comparing the £10,593.23 average annual cost of raising a child alongside the savings parensioners currently have for retirement, which would give them an annual income of £8,407. That is, of course, if they have a private pension. Worryingly 27% of parensioners confessed to not having put away a single penny for their lives after work.
Nearly a quarter (22% or 219,311) of parensioners have children that will be aged 15 or younger when they reach pensionable age. And many more parensioners will see their retirement years coincide with one of the most expensive periods of raising a child: university. With the average cost of attending university standing at £53,330 over the course of a typical degree, that's a considerable outlay at a time when many parensioners will be hoping to rein in spending to make ends meet.
With the impending reality of struggling financially, almost half (47%) of parensioners believe they need to urgently increase their savings for retirement, by almost £500 per month on average. This would enable parensioners to feel they could maintain a comfortable retired lifestyle and continue to support their young children - something that is no doubt easier said than done.
Considering all of this, it is understandable that almost three quarters (73%) of parensioners regularly worry about how they will cope with the dual financial pressures of parenting and retiring. Sadly, almost half (47%) admitted that money woes have them wishing they'd started a family at a younger age.
Ray Chinn, LV= Head of Pensions, said: "We often see tales of mature celebrities that have become new parents; none more recent than Halle Berry who announced the pregnancy of her second child, at the age of 46, in last few days. And like these celebrities, we can now see just how many normal men and women are following in their famous footsteps and becoming what has today been dubbed ‘parensioners'.
"Everyone has their own reasons for when they start a family and the research identifies the key reasons - most prominently that people wanted to have one more child before they were deemed "too old" and that they didn't meet the right person to have a child with until later in life.
It is important to highlight that we didn't conduct this study to judge what age a person should have a child. However, for anyone that is considering bringing little ones into their lives, whatever their age, we would urge them to think about their future savings and retirement plans, seek specialist advice and consider all of the options that will help them sustain their lifestyle and continue to be able to provide for their children on their paths to adulthood."
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