And the research – from Lloyds Bank and the Future Foundation – says a further 4.25 million UK adults aged 18+ are still living with their parents.
Worse than the 1970sThe latest findings from the Lloyds Bank Family Savings Report show adult children in the UK have an increasing reliance on their parents. The 70% of young adults draining their parents' savings after they leave home, is up from 53% during the 1970s.
The proportion of young adults receiving their parents help with rent payments has more than trebled from 6% to 20% today. The proportion of young adults receiving their parents' help with utility bills and day-to-day living expenses has also trebled, from 5% to 15%, and 7% to 22% respectively.
The research shows that money for houses (£11.3bn), cars (£4.4bn) and weddings (£4.3bn) are the biggest 'single bills' for UK parents supporting their children, and an additional £5.2bn is given out each year in cash gifts that are not contributing towards a specific cost or purchase.
Demanding children25-29 year olds demand the most from their parents, on average £2,599 is given to them annually per UK adult, which is significantly more than the average of £1,125 across all age groups.
Of the £2,599 given to the average 25-29 year old in a year, £606 goes towards the cost of buying a home, £462 toward a wedding and £429 towards paying off credit card bills and debts.
Home not-aloneAs younger adults remain at home longer, parents provide yet more financial support in the form of free accommodation, energy, and other day-to-day living expenses. It is estimated that 4.25 million UK adults aged 18+ currently live with their parents. This number increased by 20% between 1997 and 2011.
The report shows that by living at home with parents, a typical young adult will save around £4,844 per year, by comparison with living independently. Over £2,000 a year is saved on rent, £795 on essential bills and £735 on food.
Whilst these figures highlight the demand that young adults place on their parents, the research shows that parents also continue to feel a commitment to supporting children financially;
- A clear majority of UK adults (64%) still say that they would feel they were letting down their family if they did not save for the future.
- Around two-thirds (68%) feel that children cannot hope to achieve success in life without financial support from their parents.
- And more than three-quarters (76%) now believe that parental financial support will become more important in future.
Saving for the futureAndy Bickers, Director of Savings at Lloyds Bank, said: "The last two decades have seen a massive increase in the financial demands made on parents by their adult children, and now more than ever, saving for the future is really important.
"To get children into the savings habit it's best to start early, by parents encouraging them to put money aside each month as they start earning, and over time they too can think about putting money away for their own children as they get older."