Three in five parents with children aged over 18 are providing financial support, with one in seven saying it will delay retirement or leave them with a more modest later life, according to Standard Life.

The retirement specialist said its research points to a growing strain on household finances as parents continue to help adult children with day-to-day costs, university expenses and housing.

Among parents of over-18s who offer support, 61% said they were helping financially in some form. Standard Life said 75% of those parents believed that support had affected them financially, while 27% had dipped into savings.

The findings also have a property angle. More than one in 10 parents of adult children, 13%, said they were helping their children on to or up the property ladder, underlining the continued role of the so-called Bank of Mum and Dad in housing affordability.

Support was also being directed towards everyday expenses. Around 26% said they were helping with rent, bills and food, while 13% were funding one-off purchases such as cars or household items. A further 11% were contributing to savings accounts for their children and 10% said they were supporting or saving for grandchildren.

Standard Life said the pressure was not limited to housing and living costs. Against a backdrop of renewed debate around student finance, including the longer-term burden of Plan 2 student loans, 11% of parents said they were helping to cover university fees to reduce the need for large student loans.

The longer-term consequences for parents’ own finances were clear in the research. Some 18% said they were saving less for the long term, while 12% said they had contributed less to their pension than they had hoped.

One in seven, 15%, said they expected to retire later than planned, while the same proportion said they expected to have a more modest retirement and to be more reliant on the State Pension.

Among parents of over-18s who are already retired, 24% said having children was the single biggest factor affecting their ability to save for retirement.

Despite that, many parents said they were content to keep providing support. More than half, 57%, said they expected nothing in return, while 39% said they were happy with their decision to help financially.

The main motivations were a desire to protect children from debt or financial hardship, cited by 47%, and a sense of responsibility, cited by 46%. Another 36% said they wanted to help their children achieve long-term financial security.

Standard Life also found that 11% of parents viewed support today as a form of early gifting for inheritance tax purposes, ahead of pensions coming into scope of inheritance tax from 2027.

At the same time, not all families are taking the same approach. The research found that 15% of parents of children of all ages planned to prioritise enjoying their money in retirement over leaving an inheritance.

Mike Ambery, retirement savings director at Standard Life plc, 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. 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.

“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 ISAs (JISAs) 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.”