| Average support age | UK parents expect to support children to age 26 |
| Self-sufficient by 21 | Only 9% of parents believe this |
| Support into 30s | 18% of parents expect this |
| Deposit help | 24% of parents plan to help with home deposit |
| Source | M&G investor survey June 2026 |
Last reviewed: 18 June 2026
UK parents expect to provide financial support to their children until the age of 26, according to a survey published by M&G. Only 9% of parents believe their children will be financially self-sufficient by 21, while 18% expect to continue providing support into their children's thirties. A quarter of parents plan to help with a home deposit, forcing many to adjust their own spending and retirement planning. The findings reflect a structural shift: house prices at multiples of income, student debt from the outset of working life, and higher living costs have pushed the financial independence timeline significantly later.
Helping With a Deposit Without Damaging Your Own Position
Gifted deposits can be used for a home purchase. Most mortgage lenders require a gift letter confirming the money is a gift not a loan, and that the donor has no interest in the property. If the money is a loan to be repaid it must be declared and will affect the affordability assessment. Lifetime ISA funds can be used for a first home purchase on a property costing up to 450,000 pounds. For parents who established a LISA for a child in their late teens or early twenties, the 25% government bonus on contributions up to 4,000 pounds per year represents meaningful additional support toward a deposit. LISA withdrawals for non-qualifying purposes incur a 25% penalty that claws back the government bonus plus a portion of the original contribution - timing matters.
The Pension Trade-off
For parents in their 50s, financial support to adult children sits in direct tension with the final decade of pension accumulation before retirement. A higher rate taxpayer making a 1,000 pound pension contribution pays only 600 pounds out of pocket after 40% relief. Diverting that 1,000 pounds to child support foregoes not just the 1,000 pounds of pension growth but the 400 pound tax relief. The decision should be financially explicit. A parent planning to provide 20,000 pounds toward a child's deposit should model what that means for their own retirement age or income before committing.
Options for Asset-Rich Parents
For parents with significant property equity but limited cash, equity release is one option for funding support. It comes with compound interest costs and affects the estate available for inheritance. An FCA-regulated financial adviser should be consulted before proceeding. For parents on more modest incomes, practical support such as housing an adult child at home while they save is often more sustainable than cash transfer without strain on retirement savings.
Frequently Asked Questions
Can I give my child money for a house deposit without affecting their mortgage?
A gifted deposit can be used for a home purchase. Most mortgage lenders require a gift letter confirming the money is a gift not a loan and that the donor has no interest in the property. A genuine loan to be repaid must be declared and will affect the affordability assessment. Verify requirements with the specific lender.
What is the maximum I can contribute to a Lifetime ISA?
The LISA must be opened and owned by the individual aged 18 to 39. The maximum contribution is 4,000 pounds per tax year with a 25% government bonus (maximum 1,000 pounds per year). It can be used toward a first home purchase on a property costing up to 450,000 pounds. Non-qualifying withdrawals incur a 25% penalty.
Will helping my children financially affect my pension?
Financial support to adult children reduces money available for pension contributions. Pension contributions receive tax relief at the marginal rate making them highly efficient. The impact depends on age, existing pension balance and planned retirement date. A financial adviser can model the specific trade-off for your circumstances.
