Financial dependency is nothing new. Many of us have had to ask for help from time to time, however, Moneyfarm, the European digital wealth manager, has carried out new research to find that as much as 25% of the UK are dependent on a partner’s income. The report also states that the nation is 17% financially reliant on our parents, while 10% of us rely on other relatives.
Surprisingly, 8% of UK adults depend on their children, and an estimated 22% of 18-30 year olds are supporting their parents. 35% of parents who rely on their children have reported anxiety about their finances, while 31% are comforted by it, but 22% are embarrassed to rely on their children.
Conversely, 17% of the population continue to be dependent on their parents’ income after the age of 18, with 10% of UK adults over the age of 30 still dependent on their parents; of those, 42% feel anxious about their reliance, while 28% feel secure.
A further 10% of the UK claim to be reliant on their friends for some or all of their income, and another 16% are aiding friends with things like rent and food.
Finally, a huge 51% of UK inhabitants are confident they have family or friends who would support them until they found stability: 34% of people have done exactly that in the past year.
Giovanni Daprà, CEO and Co-Founder at Moneyfarm says: “I am not surprised at the levels of financial dependency we are seeing given the uncertain times we are living in. It is surprising however how much financial weight the younger population are carrying in order to support their parents.
“It is important that people make any money and savings they have to work as hard for them as possible so its value is not eroded in this rising inflation environment. That means thinking about long-term investing. You might not think about planning for 20, or 30 years ahead. But as the saying goes, the best time to plant a tree was 20 years ago, the next best time is today.’
“Savvy financial planning can help people to achieve financial wellbeing and independence.”