Have retired parents got enough support financially?

As we look back on our early adulthood, it’s clear that many of us depended heavily on our parents’ financial support to get by. In fact, two thirds (67%) acknowledge that they benefitted from the so-called ‘Bank of Mum and Dad’. However, new research from Aegon suggests that the tables are turning. More than half of us (55%) now anticipate that we’ll be the ones stepping in to provide financial support to our parents as they journey through retirement.  

For some, the reliance on parental financial help extends well into adulthood. 37% of people say the last time they turned to the ‘Bank of Mum and Dad’ was when they were in their twenties but 1 in 6 continued to seek support into their thirties. Despite this ongoing financial assistance from parents, a third (34%) of people express concerns about their parents’ financial situation in retirement, worrying whether they’ll have enough money to get by comfortably. 

The Second 50 report from Aegon which publishes today shows that there is a generational divide when it comes to who will be financially self-sufficient in retirement and who may need help. And it shows a worsening trend. Those aged between ages 45 and 54 were most upbeat about their parents’ prospects – with 46% saying they believe their parents are financially stable enough to support themselves through retirement. But this drops to just 2% for those in the 18-24 age bracket.

Aston spoke to Steven Cameron, pensions director at Aegon.

Photo by Colin Watts on Unsplash