1 in 3 Parents Helping Stay-At-Home Adult Children By Using Pension Money, Costing £5,000 Annually

Adult children staying with their parents after they’ve grown is becoming more common. Over half of parents with adult children still have them living at home, costing nearly £5,000 per year on average.

Why This is Happening: Young adults face financial pressure from high housing costs and student loans. This leads many to stay with their parents to save money.

Parents’ Solutions:

  1. Using Pension Money: 31% of parents are tapping into their retirement funds to meet these costs. This could cause them to be almost £14,000 worse off over five years, assuming a 6% growth.
  2. Using Savings: 28% are using savings.
  3. Changing Lifestyles: 19% are altering their lifestyles.
  4. Working Longer or Not Downsizing Property: 13% can’t downsize, and 11% are working longer.
  5. Rent from Children: 11% are receiving rent from their children, covering the bills.

Pension Freedom Reforms: Since 2015, reforms allow those over 55 to take control of their pensions, including using them for extra cash if needed.

The Risks: While parents feel a need to help, this support may impact their comfortable retirement. The managing director of retirement advice firm Portafina warns of a fine balancing act between supporting children and funding retirement. Without careful thought, using hard-earned pension money could significantly affect the parents’ quality of life in their later years.


  • 29% of adult children make no contribution to living costs.
  • Among the children at home, 15% are aged 18, 22% are 19, 14% are 20, 12% are 21, and 6% are 22, the rest are older.
  • 1 in 20 parents believe their adult children might never move out.

Conclusion: The article highlights a growing trend in the UK where parents are having to financially support adult children who stay at home. The measures taken, particularly tapping into pension pots, present potential long-term financial risks for the parents. It’s a delicate balance between helping children and ensuring future financial stability. The research encourages caution, consideration, and possibly professional financial guidance to navigate this complex situation.