Newly released research and data from Canada Life has revealed that 35% of grown-up children have returned to their family home due to the ongoing impact of the pandemic – costing parents £425 per month.
Overall, the living situations of 7.2 million Brits have changed since January, of which 10% can be attributed directly to COVID-19. And while 83% are happy with their new circumstances, the outlook isn’t so positive for the 26% of parents who welcomed back their grown-up children. Of this group, 27% would like their children to move out and 24% are worried they might stay longer than anticipated.
Changes to work patterns (24%) and wanting to wait out lockdown together (22%) – or with a garden (19%) were among the biggest drivers for these changes. Only 26% said their change in living circumstances was already planned pre-COVID.
The financial implications
Parents who have welcomed back grown-up children are spending £425 more on average per month, whereas those who have moved back in with their parents have typically reduced their monthly outgoings by £714.
But, while only 23% of parents are asking their kids to contribute to household costs, grown-up children appear to be paying their way, with 78% contributing to rent (£264), food costs (£390) and monthly bills (£390). However, 25% of parents are still worried about the financial implications of their children being at home.
In addition to these financial challenges, parents have made other sacrifices for their children this year; 31% have converted a room into a spare room for their child to stay in, 26% have bought new furniture, 18% even gave up their own bedroom and a further 12% gave up their home office.
Despite these challenges, lockdown seems to have divided opinion among parents who have welcomed their children back home, with 23% wanting to move closer, but the same number considering moving further afield.
Alice Watson, Head of Marketing, Insurance, Canada Life said: “For many, the events of the last few months have brought families back together again and challenged the multi-generational norms to which we’ve become accustomed. Lockdown has been a once-in-a-lifetime opportunity to live with family members again for some, but others are keen to return to normality. However, the reality is that we may see the impact of COVID-19 affecting our living situations for much longer than anticipated.
“While younger generations have had an opportunity to save money during lockdown, those parents welcoming back grown-up children have been hit with financial pressures – including increased utility and food bills – which could have a knock-on effect on their retirement income. For those worried about the financial implications of lockdown, speaking with a financial adviser is a sensible first step.
“These professionals can highlight how property wealth could be used to meet the evolving needs of today’s retirees, and help customers find the best-suited product for their individual circumstances.”