New UK statistics appear to suggest that many people are delaying retirement in order to be able to afford putting their children through university. To afford expensive higher education fees, some parents are prepared to work for five or even 10 years longer than originally planned.
Recent data shows that parents currently spend between £7,000 and £15,000 each academic year. Figures published by the BBC website show that the annual cost of a degree rose by £285 in 2024. Undergraduates are eligible for means-tested student loans, but around 20% of parents opt to fund all costs, covering both tuition and accommodation. Nearly 10% of parents surveyed provide upwards of £15,000 a year to their child’s higher education.
The Student Loan Company claims that an average student in the UK graduated in 2024 with debts of circa £53,000. However, these figures do not include the cost of £9,353 annual tuition fees. Nor do they factor in the cost of helping young adults after graduation at a time when there are fewer entry-level jobs than ever.
This may cause complications for parents all over the UK looking to plan their retirements in the near future. Nearly 66% of those questioned in a recent survey reported cashing in their savings, whilst 29% sold investments.
If you are a parent in a similar situation or are currently retirement planning in Cheshire, you may benefit from some expert financial advice. Call our specialist team at Hartey Wealth Management today to set up a consultation.
