Marvin OnumonuThree in five (61%) parents with adult children were supporting them financially and one in seven (15%) said this would delay their retirement or mean a more modest retirement, according to Standard Life.
Most parents (26%) said helping with living costs was the main form of support, paying towards rent, bills or food.
Around one in 10 (13%) were helping with house deposits or one-off purchases like cars and furniture.
Some (11%) were putting money into savings accounts for their children, while a similar number (10%) were saving for their grandchildren.
Three quarters (74%) of parents who were supporting their adult children said it had affected them financially.
Over a quarter (27%) had dipped into their savings, while one in five (18%) were saving less for their own future.
12% said they had contributed less to their pension than planned and one in seven (15%) expected to retire later than they had hoped.
The same number (15%) said they would need to rely more on the State Pension.
Among retired parents, a quarter (24%) said having children was the biggest factor in their ability to save for retirement.
Despite this, the research found that many parents were happy to help.
Over half (57%) said they expected nothing in return and two in five (39%) said they were satisfied with their decision to support their children.
Around half (46%) said they felt a sense of responsibility and wanted to protect their children from debt or financial hardship (47%).
36% wanted to help their children achieve long-term financial security.
11% saw their support as an early form of gifting for inheritance tax reasons.
The report also found that one in seven (15%) parents planned to prioritise enjoying their money in retirement over leaving an inheritance.
Mike Ambery, retirement savings director at Standard Life, said: “For many parents, helping their children financially is something they would do in an instant, without hesitation.
“With student loan repayments, higher housing costs, rising living expenses and job market pressures all affecting younger generations, it’s understandable that parents want to offer support where they can.
“Life is rarely linear, and like many other milestones, it’s completely normal for pension savings to take a back seat when focusing on supporting children.”
Ambery added: “However, at the same time, parents mustn’t lose sight of their own financial goals.
“Everyone’s journey to and through retirement can be better and understanding where you are in terms of your own long-term finances is also important, to ensure you are heading towards the retirement you envisage.
“This means setting clear expectations with your children about the level of support you can realistically provide, making sure you’re still contributing what you can afford into your pension, and ensuring you’re thinking about how much money you will realistically need for retirement – striking the right balance between supporting children today and staying engaged with your own financial future.”
He said: “For parents with younger children thinking ahead and starting early, even with small amounts, can help build financial resilience for the next generation while keeping your own long-term plans on track.
“Junior ISA’s (JISA’s) and even child pensions are a great way to do this, providing a tax-efficient way to give children a head start and potentially benefit from compound interest or investment growth from the earliest moment possible.”
