Once they turn 21 and reach adulthood each of these ‘chadults’ costs their parents £47,324 on average during their adult years, according to the study.
British parents are regularly helping to pay towards their grown-up children’s basic living costs including bills and rent, at an average of £2,103 per year or £175 per month for each chadult.
On top of this, parents are spending an additional £9,476 on average per child on big ticket items over the course of their adult lifetimes, such as helping to get them on the housing ladder, further education, holidays, or paying towards a wedding.
Earlier this year, LV=’s Cost of a Child Report found that the cost of raising a child from birth to age 21 totalled £218,024, and today’s findings show that it doesn’t stop there, as a generation of chadults (aged 21 and over) rely on financial assistance from their parents late into adulthood.
The new research discovered that it isn’t just those on the right side of 30 that need help from their parents as it isn’t until age 38 that parents on average expect their chadults to be financially independent, and 28% of parents currently supporting chadults expect to always provide financial assistance to their children.
Of the 4.4 million chadults in the UK receiving financial support from their parents, 1.6 million live at home. Of these over half (58%) are in their twenties, a third (29%) are in their thirties and one in ten (12%) are over 40.
The overall cost of financially supporting a chadult that lives at home is significantly more, with parents spending £55,447 over the years on average.
The average age of a first-time buyer in the UK today is 38, and this is predicted to rise to 41 by the year 2025. So it is perhaps not surprising that a third (33%) of parents with chadults living at home cite their children not being able to get onto the property ladder, and not wanting to rent, as the reason.
Nearly one in five (18%) say their children are living at home because they have not been able to get a suitable job since leaving education, and 12% say their adult children are home again following the breakup of a relationship. One in ten (10%) say their children are living at home because they have a lot of debt that they need help paying off.
Mark Jones, LV= head of protection, said: “Bringing up a child is expensive and for millions the cost doesn’t stop there. Young people are leaving university with large debts, youth unemployment is at a record high and property is unaffordable for many. So it is likely we will see a growing number of adults who continue to depend on their parents financially.
“Many of these parents won’t have considered how their kids would continue to cope if they could no longer support them financially. Income protection, life cover, and putting appropriate policies in trust; and having an up-to-date will in place, can all provide invaluable financial security for families.
“With the end of year price changes on protection products fast approaching it gives advisers an opportunity to revisit the cover parents have in place, to make sure it can support their young and often grown-up family too.”
