Number of over 60s with dependent children rising

Michael Lloyd

February 14, 2018

The number of parents approaching retirement with children under 18 is predicted to reach nearly one million over the next decade, One Family found.

More over 60s than ever before will have children under 18 and in the next 10 years it will rise from circa 400,000 to over 900,000.

Nici Audhlam-Gardiner, managing director of OneFamily Lifetime Mortgages, said: “It’s great to see parents having children later in life, however these bundles of joy come at a high cost.

“At 60 most parents have seen their children fly the nest, but instead this group of over 60s are still facing the costs associated with younger children.

“With young children living in the family home, downsizing is also not an option. However, there are now many different ways of funding retirement, including lifetime mortgages, where homeowners can take advantage of the large house price rises we have seen over recent years.

“Over 60s thinking about how to fund their retirement should speak to a financial adviser and explore all the options open to them.”

These statistics also reflect Office for National Statistics figures, which show a steady rise in the ages of mothers and fathers, with women over 30 now more likely to enter parenthood, than their younger counterparts.

Many of these older parents have chosen to have children later in life as part of a second marriage (20%).

With the average deposit for a first home now reaching £33,000, the cost of buying a home has had a significant impact, with one in ten (10%) older parents saying they prioritised saving for a home before having children.

Finances played an important role, with half (48%) of these older parents saying they had children later in life in order to be more financially comfortable.

Older parents, who would traditionally be saving for their upcoming retirement, found a financial impact of having children later.

Two-thirds (69%) said their finances have taken a hit, with 33% saying they have less disposable income than they planned. A quarter (27%) said they have less savings and one in 10 (14%) admitted they have had to cut back on their day-to-day expenses.

Retirement savings in particular take a back seat, with one in six (16%) admitting that they have saved less towards their retirement and 14% dipping into money they had already saved.

This is having a knock on effect on retiring, with 17% of these older parents saying they will put off leaving work.

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