Find out what 77% of Brits can’t afford without their parent’s help

The big purchases in life are only getting more expensive, but just how many adult Brits are coughing up the cash themselves, or turning to their parents for financial help?

Pensions advice specialists Pension Access surveyed the nation* to find out how many are struggling with big purchase costs or even everyday bills and turning to the bank of Mum and Dad for help.

The results revealed that more than half of Brits aged 18 to 45 have savings that have been added to by their parents (56%) with more than half of UK parents (52%) gifting up to £5,000 to their children with no expectation of it being paid back. Despite this, two-thirds of Brits aged between 18 and 45 said they didn’t expect their parents to gift them money (65%).

Those who receive the most financial help from their parents are 18-24-year olds (57%), with nearly a third of this age group receiving help with their phone bills (30%).

When it comes to men versus women, more men admitted to having received monetary help from their parents (66% vs 51%).

The top 10 purchases/financial costs the bank of Mum and Dad is helping Brits fund:

1. A first car (30%)
   
2. Holidays (23%)
   
3. Deposits for a first house/flat (20%)
   
4. Wedding costs e.g. dress/suit, venue hire (20%)
   
5. Support with costs involved with driving e.g. insurance, petrol, maintenance (17%)
   
6. Household bills (17%)
   
7. Education e.g. university fees, accommodation costs (17%)
   
8. Support with first property costs e.g. solicitor fees, furniture (15%)
   
9. Subsequent car/cars (12%)
   
10. Phone bills (9%)

The majority of Brits are happy to be upfront that they couldn’t have afforded key life purchases without their parent’s help (77%) and only 6% confess to covering up the truth due to embarrassment.

“When the house I was renting in Leeds went up for sale, my dad offered to pay the deposit so I could purchase it. I didn’t expect him to offer and I’m not embarrassed about telling people I had help either – without his help I don’t think I’d have been able to get on the property ladder this early.”

India, 26, Hertfordshire

Reasons parents help their children include:

• They wouldn’t manage financially without my help (39%)
• I have the disposable income available (38%)
• My parents helped me out when I was younger so I want to do the same for my children (25%)
• I helped their siblings out in the same way (16%)

*2,000 UK adults aged 18 to 45, and 1,000 UK parents by TLF Panel in November 2018 

Taking pension money early is not right for everyone as it will leave you worse off in retirement. Also, tax treatment depends on your circumstances and is subject to change. That’s why it makes sense to get help from a regulated specialist.