One in Three Parents Delay Retirement to Fund Children’s University, Study Finds

One in three parents in the UK are postponing their planned retirement in order to fund their children's university costs, new research from wealth manager Rathbones shows.

Rathbones found that 33% of parents are working beyond their desired retirement age; those parents expect to work on average five years longer than they had planned. More than a quarter (27%) said they had pushed back their retirement date by as much as a decade to bankroll a child through higher education.

The report said the so-called "Bank of Mum and Dad" is increasingly active as rising living costs and surging student rental payments have stretched household budgets. Parents are typically providing an average of £7,200 a year to help a child through university, the research found. A sizeable minority provide substantially more: 14% of parents give between £10,000 and £15,000 each year, and 8% contribute more than £15,000 annually.

Rathbones noted that student finance payments frequently fall short of covering undergraduates' maintenance costs such as rent, food and utilities, leaving families to make up the shortfall. The research underscores a widening gap between official student support and actual living costs faced by students, particularly in high-rent areas.

The findings were published amid a broader debate over the affordability of higher education and the financial pressures on mid-life households. Rathbones' analysis highlights how parental funding for students can alter retirement timelines and affect later-life work decisions.

The study's results reflect a trend tracked in recent years in which parental support for adult children has become an important component of household financial planning. Rathbones did not provide a breakdown by region or income band in the summary released with the figures, and the research did not quantify the long-term impact on pension savings beyond respondents' reported intended retirement delays.

Policy makers, financial advisers and universities have pointed to maintenance costs and local housing markets as key drivers of student living expenses, factors that parents in the Rathbones study cited when explaining their decision to continue working. The research was updated on 4 September 2025.