If you have been working with us for some time, you should feel confident that you’re on track to achieve your retirement goals. But financial planning isn’t only about your own future; it’s about your family, too.
That’s why you may want to have conversations with your adult children about whether they’ve considered their own retirement. The chances are, if they are still decades away from finishing work, they won’t have a clear plan in place.
Here are three reasons why you might want to encourage your adult children to start planning for retirement now.
1. Only 38% of millennial and Generation Z households are on track for an adequate retirement income
As the cost of living rises and it becomes more difficult to save for retirement, younger generations are more likely to face a shortfall in later life.
Indeed, according to PensionsAge, only 38% of millennial and Generation Z households are on track to achieve an adequate retirement income. It’s also worth noting that these figures only refer to the most basic standard of living, and it could be even less likely for these individuals to enjoy a comfortable lifestyle.
This could mean your children may have to live a very basic lifestyle, unable to travel or enjoy an active social life in retirement due to financial constraints.
Research published by the Actuarial Post also shows that 59% of millennials are struggling to save for retirement, and only 20% say their pension is a priority.
If you encourage your adult children to start planning for retirement now, they may have more time to bridge gaps in their savings and achieve a better standard of living later.
2. Starting earlier could make it far easier to build wealth for later life
The benefits of compound interest mean that the earlier your adult children start saving for retirement, the easier it will be to build wealth.
For example, figures from Moneyfacts show that if your children started saving 12% of a £30,000 salary at 30, their pension pot would be worth around £202,000 at age 67.
However, if they started saving at age 45, their pot would only be worth roughly £101,000. So, even though they have only reduced their savings window by 15 years, they have more than halved the size of their retirement pot.
This demonstrates the power of compound returns and why saving as early as possible is crucial.
As research shows that many millennials don’t prioritise their pensions, you may want to explain the benefits of contributing to their retirement pot earlier in life.
3. You could make supporting your children part of your own financial plan
According to MoneyAge, 32% of people believe they will need an inheritance to have enough money to live on in retirement.
If your children are in a similar position and a potential inheritance is part of their retirement plan, you may want to discuss this with them for several reasons.
First, it’s important to set expectations about how much you expect to leave them. In some cases, they might overestimate their inheritance, and this could mean they later struggle to fund their retirement.
Secondly, if your children require support with their own retirement savings, you could incorporate this into your own financial plan. Instead of leaving your remaining estate to them when you pass away, you might consider gifting a portion of your wealth to them while you are alive.
As discussed earlier, contributing sums to their pension at a younger age could give them more time to generate growth. So, gifting wealth while alive to help your children build their retirement savings might be more beneficial than leaving a large inheritance later.
Alternatively, you might support them with other financial goals, such as buying their first home, so they are more financially stable and can divert more funds to their retirement savings.
Intergenerational financial planning conversations can help everybody achieve their dream retirement
If your adult children have yet to engage with retirement planning, we can facilitate intergenerational conversations and consider your goals, as well as theirs.
We might explore options for lifetime gifting to help your children build their retirement savings and give them the tools they need to take control of their financial future.
Get in touch
To learn more about how you can support your children with their retirement plan, please give us a call on 01276 855717 or email info@braywealth.com today.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
From 2028, the age at which someone can access their pension will be 57 rather than 55.
Approved by the Openwork Partnership on 01/04/2026
Production