Mounting Pressure On Parents Of Adult Children With Over Half Concerned About Making Ends Meet Themselves

The bank of mum and dad is becoming a major casualty of the cost-of-living crisis as parents are undergoing financial strain to support their adult children, new research reveals.

Almost 60% (59%) of parents are currently financially supporting adult children, and more than a third (35%) revealed their offspring wouldn’t be able to make ends meet without this economic lifeline, according to a survey by law firm Irwin Mitchell.

The poll of parents with children aged 18 or over found that far from enjoying an easy and secure retirement, many Baby Boomers, born between 1946-64, and Gen X, born between 1965-79, were feeling the pressure to financially maintain grown up children.

Nearly half (43%) said that the rising cost of living has increased pressure on them to support their children. More than half (53%) said they are concerned about making ends meet themselves and protecting their own wealth.

Despite one in five thinking their adult children will always need a level of financial support, only 17 per cent have had professional advice on how to protect their wealth while passing it down, the survey of 1,000 parents with adult children found.

Indicating further financial pain to come, 30% of parents have already placed restrictions on what their children can use the money they give them for, and two-thirds (65%) revealed they have nothing in place to support their family long term.

Irwin Mitchell is one of the UKs largest law firms and provides legal and financial services to both individuals and businesses across the UK. They say that it is crucial that people should seek specialist advice when planning anything major with their finances such as helping children with a deposit for a house, paying for university or education, or simply sharing money with loved ones.

Expert Opinion

“It’s vitally important to get advice if you’re planning to do anything with your money or assets to avoid unforeseen circumstances sometimes years later with inheritance tax issues for example.

“Even simple things like a Will or Lasting Power of Attorney can help give you more control of your finances in this time of uncertainty and avoid costly disputes in future. There might also be better ways to gift money. For example, you might want to put money into a trust to make sure it’s used in the right way, or you may want to ensure its protected by pre-nups or post-nups in the event your adult children divorce.

“Without these legal documents in place, you run the risk of leaving your assets and wealth to chance, rather than knowing exactly what will happen - the last thing anyone wants is to be landed with a huge tax bill or a legal dispute a few years down the line.

“Taking legal, financial or tax advice is really simple, and can give you piece of mind about on helping your adult children out financially.” Paula Myers, Director of Private Client Legal Services

The research paints a bleak picture of the British economy – as nearly nine in 10 (88%) admit they are concerned about the rising cost of living on their own financial situation.

Irwin Mitchell has launched a campaign to support people during the moments that matter in life, so they can look ahead with certainty - knowing they’re looking after those that matter the most.