Millions of parents are being forced to push back their retirement plans by up to a decade in order to be the "Bank of Mum and Dad" for their children. shocking analysis has found.
Research conducted by wealth manager Rathbones found that a third of parents have had to delay leaving the workforce to cover tuition fees, accommodation, and living expenses.
More than a quarter now expect to work up to ten years longer than planned. Parents spend an average of £7,200 a year supporting children at university, with one in seven contributing as much as £15,000 annually.
Some families face even greater pressure, with 22 per cent covering all costs themselves, which the research suggests is having a financial knock-on effect later in life.
Parents are sacrificing their own future for their children's
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Analysts note that parents are shelving plans for travel, leisure, or reducing their working hours. For some, a peaceful retirement now feels out of reach.
Nearly two-thirds of parents have dipped into savings to fund studies, while others have sold investments, taken on credit card debt, remortgaged, or even downsized.
“It is not just the three or four years of university costs that parents need to plan for anymore, but what happens after graduation,” said Faye Church, senior financial planning director at Rathbones.
She warned that the "Bank of Mum and Dad" is being stretched further than ever before.
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In its analysis, Rathbones highlighted the story of one mother in her fifties delayed drawing her pension to support her daughter in London. Another couple pushed back retirement by eight years.
“We love our son and we want him to have the best start in life, but we never imagined it would mean we would still be working into our seventies,” they said.
As part of its analysis, the wealth management firm cited that many students have to respond to a competitive job market that increasingly demands higher qualifications and specalised expertise.
The challenge is compounded by the barren graduate job market. Universities UK data shows that only 59 per cent of students were in full-time employment 15 months after graduation in 2023, down from 61 per cent the year before.
Students are struggling to find graduate roles with the transition to AI
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Even those in work struggle with financial independence, according to Rathbones. Graduates earn more than peers without degrees, averaging £30,751 by age 31, but often leave university with debts exceeding £50,000.
Under the Government’s Plan 5 scheme, repayments start only after earning £25,000, slowing their path to independence.
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For many families, especially in London, maintenance loans fall far short of housing costs, leaving parents to fill the gap.
Ms Church says better financial planning can help but the pressures are real and growing.
“Sadly, this issue shows no sign of abating as the path from university to financial stability becomes more uncertain,” she said.
Fiona Peake, Personal Finance Expert at Ocean Finance, told GB News: "Postponing retirement by five to ten years might feel like a temporary fix, but it can have lasting effects on long-term financial wellbeing. Instead of topping up pension pots in those final years of work, many parents are diverting income towards rent, tuition and living costs. That means less compound growth in savings and a smaller safety net for later life. For some, it also delays downsizing plans or the chance to enjoy retirement in good health.
"The cost of supporting a child through a three-year degree can easily exceed £60,000. And that’s before factoring in food, travel and utilities. Families without large disposable incomes often end up borrowing, dipping into pensions early, or postponing retirement altogether.
Families do have options to lessen the strain. Having open conversations with children about budgeting before university can reduce the day-to-day burden. Students might consider part-time work or paid internships during holidays to help cover costs. Parents who plan ahead can use ISAs or dedicated savings accounts, treating university as a long-term goal in the same way as retirement. Another option is encouraging children to apply for bursaries, scholarships, and hardship funds that often go unclaimed.
When parents postpone retirement, it slows the natural movement of older workers leaving the labour market and can limit opportunities for younger workers. The financial pressure also risks making university less accessible for students from lower-income households."