Family dynamics are changing. How does this affect how we prepare for retirement?

Over the past decade, there has been a significant shift in society’s idea of what ‘family’ has meant. One of the deciding factors in this shift has been people’s approach to having children. Research from the Office for National Statistics found that the average age of a first-time mother in the 2020s was 35; to compare, the average age of first-time mothers in the 1970s was just 26. And this age is projected to rise over the next decade.

So, what impact does this have for 50-year-olds today?

My Pension Expert’s research analysis supports the ONS data, uncovering that 45–59-year-olds – also known as ‘midlifers’ – are having less children today than the previous generation (1.99 Gen X vs 2.17 Baby Boomer). And those who are having children, are having them later in life, with 32% of midlifers having a child under the age of 16. This compares to less than a quarter (<25%) of the Baby Boomer generation who had a child under 16, during their midlife years.

Our research suggests that, while the number of people having children falls, people who are having children are choosing, more than ever, to have them later in life.

As we look deeper, we highlight what this means for people’s finances, especially for those aged 50 and over.

Is the delay costing Gen X?

Everyday spending seems to continue to rise, and the dependence of children creates further financial pressures, especially for midlife parents who have retirement in sight.

Today, Gen X parents are spending four times the amount of their income on their children when compared to Baby Boomer spending. In fact now, over one in five (22%) households are spending above 30% of their expenditure on their children, compared to just one in 25 (4%) of Baby Boomer households.

And despite the additional financial commitment, Gen X must still secure their own financial futures.

Parents also often set additional financial expectations for themselves when raising their child. Whether it’s supporting your child learning to drive, helping them through university or perhaps contributing to a deposit on their first house, a lot of these milestones present additional financial commitments.

So, it can be easy to get caught up in the world of parenthood and not plan your retirement for what comes next, both for you and your child.

But that’s where My Pension Expert’s ‘One Million More’ campaign can play a role.

Join the One Million More

The ‘One Million More’ campaign aims to help one million more Britons to seek advice by 2030.

Why does this matter? Because so many adults, including Gen X parents, could benefit from that additional boost of support to help them save for the future, in a way that suits them.

Whilst the foundation of the campaign seeks to make people aware of how they can make informed decisions to help their money work as hard as possible, it also highlights how speaking to adviser can give you peace of mind and plan for the future with confidence.

This means that all midlife parents can benefit from the work of the campaign and from seeking advice. Advice could be the tool you need to make sure your pension doesn’t fall by the wayside while parenthood takes the lead.