A third of parents are delaying retirement to fund their children through university, with many working up to a decade longer and spending an average of £7,200 a year – and more than half still supporting them financially even after graduation, according to new research from Rathbones.
A third of parents have been forced to delay their retirement due to the financial strain of bankrolling their children through university, with more than half still supporting them after graduation, according to a new study by Rathbones, one of the UK’s leading wealth managers.
The targeted survey of parents with children who have been to university in the last decade lays bare the increasing financial strains associated with higher education, with parents on average expecting to work five years longer than planned to cover the costs. More than a quarter (27%) estimate they will need to extend their careers by up to 10 years.
According to the survey*, parents spend on average of £7,200 a year supporting their children through university; one in seven (14%) are contributing £10,000–£15,000 annually and another 8% spending more than £15,000. Around a fifth (22%) pay all their child’s costs, including tuition, accommodation and living expenses, while 27% fund accommodation and living costs.
Of concern for parents, the financial impact often extends beyond graduation, with 55 per cent saying they were still supporting children after university. Fewer than a third (31%) of parents say their children are or will be financially independent once graduated.
The increasing strain on the Bank of Mum and Dad is clear, with some parents getting into debt to support their children: three quarters (73%) say funding their children through university has negatively impacted their finances, with nearly two-thirds (63%) cashing in savings to cover the cost, while 29% have sold investments. Others have reduced pension contributions (17%), borrowed on credit cards (17%), remortgaged (13%) or downsized their homes (4%).
“It’s not just the three or four years of university costs that parents need to plan for anymore but what happens after graduation,” said Faye Church, Senior Financial Planning Director at Rathbones. “The Bank of Mum and Dad is now supporting adult children for longer, which is having significant financial consequences, both in the immediate and in the long term. Sadly, this issue shows no sign of abating as the path from university to financial stability appears more and more uncertain.
“Supporting your children through higher education need not be the death knell for retirement dreams, though. With the right advice and planning, parents can help their children without sacrificing their own goals.”
Graduate reliance on the Bank of Mum and Dad is compounded by a tougher jobs market. Universities UK** reports that the proportion of graduates in full-time employment 15 months after completing their studies fell from 61% in 2021/22 to 59% in 2022/23, while unemployment rose from 5% to 6%.
By age 31, graduates earn an average annual salary of £30,751 – a third more than non-graduates (£22,482). However, graduates also face loan repayments once earning above £25,000 under the Plan 5 scheme. Government data*** estimates the average 2024 graduate will leave university with debts of £53,000.
The cost of higher education has become a critical financial planning concern for parents as fees and associated costs continue to rise. Universities UK** reports full-time undergraduate tuition fees will increase to £9,535 in 2025/26, up from £9,250 in 2024/25. Student rents have risen 7.5% annually since 2021****, with London students in particular facing an affordability crisis as rents exceed maintenance loans.
* Rathbones commissioned independent research agency Viewsbank to interview 824 parents, including 173 who have had children at university in the past 10 years and 79 who currently have children at university in August 2025.
** https://www.universitiesuk.ac.uk/latest/insights-and-analysis/graduate-outcomes-what-latest-data
*** https://commonslibrary.parliament.uk/research-briefings/sn01079/
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