Research by Moneyfarm found that 38% of Brits in their 30s and early 40s will be relying on money from their parents to help fund their own retirement pot or pension.
A further 56% said an inheritance from their parents will be their only source of income when they retire. One in five (19%) are banking on a financial boost when their parents pass away, while 4% are already mentally spending their parents’ pensions and savings.
The digital wealth manager found that even with their parents’ money, 8% say they have no idea how they are going to pay for their retirement, with a third (30%) admitting they don’t think they will ever have enough money to finish work.
A third (29%) think they will be forced to work part-time past the retirement age, while 16% will have to continue working full-time.
On average, Brits worry about their lack of financial security 17 times per month, with 18-29-year-olds and 30-44-year-olds the most anxious and disillusioned with their pensions and financial futures.
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It seems that this reliance on the Bank of Mum and Dad is a constant presence in Brits’ lives, with four in 10 (42%) admitting that they still sometimes get ‘pocket money’ from their parents, even as an adult; 18-29-year-olds are most likely to get regular cash handouts, followed by 17% of those aged between 30 and 44.
Even though the cash comes in handy, 46% admit they feel embarrassed taking money from their mum and dad, while a further 41% feel guilty. A third (33%) say they get annoyed that they can’t support themselves and their family.
Carina Chambers, pensions technical expert at Moneyfarm, said: “In today’s economic climate, it’s clear to see that an increasing number of millennials are turning to their parents’ savings and pension funds as a crucial resource for their own retirement planning.
“This growing reliance underscores the economic hurdles faced by younger generations such as escalating living expenses – including very high childcare costs, inflation and a competitive housing market.”
Related: Gifts from ‘Bank of Family’ for home purchases will reach £9.2bn this year
