Marvin OnumonuPensionBee’s latest survey found most parents are having to put long-term savings on hold to pay for back-to-school costs.
The research found 74% of parents said school expenses put pressure on their ability to save for the future, such as their pension or ISA.
Only 7% said they felt no pressure at all.
Over half (52%) of parents said they would rather spend on their children’s education and activities than on their own long-term savings.
25% said they would put spare money into short-term savings like holidays or a rainy day fund, and 12% would focus on paying off debts or loans.
Meanwhile, just 11% said they would prioritise long-term savings like a pension or ISA.
A majority (59%) of parents said they were likely to cut or pause pension contributions during expensive times of year like September and Christmas.
35% said they were not likely to do so, and 5% said they did not contribute to a pension at all.
Only 14% of parents said they felt very confident about balancing family bills with saving enough for retirement.
30% said they were unconfident, and 25% said they felt neither confident nor unconfident.
When asked what they would do with an extra £100 each month after school costs, almost a quarter (24%) said they would put it towards short-term savings, while 20% said it would go on everyday household spending.
17% would spend it on family leisure, 15% would save it for their children’s further education, and 11% would pay off debts or loans.
Only 14% said they would put it into long-term savings such as a pension or ISA.
Lisa Picardo (pictured), chief business officer UK at PensionBee, said: “It’s clear that many parents are being forced to put their own financial futures on hold or at risk to cover everyday living expenses, and the burden of back-to-school costs.
“While supporting children’s needs is understandably a priority, parents need to keep a careful eye on long-term savings and retirement planning.
“Even small contributions to pensions can make a real difference over time, yet our research shows these are often the first things to be reduced or paused.”
Picardo added: “Finding ways to balance immediate pressures with future planning is essential, so parents can provide for their families today without compromising their security tomorrow.”
