A significant number of parents over 50 are stepping in to provide crucial financial support to their adult children struggling with the ongoing cost of living crisis, according to a major new study.
Substantial Financial Support for Daily Bills
A poll of 2,000 people aged over 50, commissioned by the financial services company SunLife, uncovered the extent of this intergenerational aid. The research found that 22% have gifted their children a large sum of money within the last five years.
Digging deeper into the data, it was revealed that nearly a third of these parents (32%) have specifically intervened to help cover rising household bills. The average amount given for this purpose was a substantial £1,972, providing a vital buffer against soaring energy and food costs.
Clearing Debts and Stepping onto the Property Ladder
The support from the so-called Bank of Mum and Dad extends beyond monthly expenses. The study shows that 16% of parents have helped their children clear existing debts, offering an even larger average sum of £2,615 to get them back on a stable financial footing.
However, the most significant financial contribution remains assistance with buying a first home. For the 18% of parents who have helped their children onto the property ladder, the average handout was a life-changing over £30,000.
A Generous Boost for Giver and Receiver
Mark Screeton, the Chief Executive Officer at SunLife, commented on the findings, stating: “Even in tougher economic times, parents are still doing what they can to give their children a head start.”
He emphasised the broader impact of this support, noting: “For many families, the Bank of Mum and Dad – or even Grandma and Grandad – isn’t just helping with a first home, it’s securing a stronger financial future.”
Interestingly, this generosity also benefits the givers. A striking 84% of those who helped a loved one onto the property ladder reported a boost in their own happiness. Mr Screeton added, “These contributions, while generous, are also shown to improve the happiness of those gifting the funds, making this a positive experience for both generations.”
Despite this willingness to help, the research indicates that the average cash gift has fallen to £12,323, a significant decrease of £7,698 compared to the previous year, 2024. The vast majority of these gifts (89%) come from parents, with grandparents making up a further 7%.
Mr Screeton concluded by highlighting the importance of this financial lifeline, especially as the government considers policy changes: “Our research highlights just how vital this support continues to be for first-time buyers across the UK, especially in today’s economic climate.”
