One in four expect to retire on a lower standard of living, new research from UK wealth manager Rathbones reveals. Nearly a quarter of respondents said they will delay retirement to support children or grandchildren.

Many parents and grandparents are making financial trade-offs to support their children and grandchildren’s university costs, with many expecting to delay retirement, cut pension savings or accept a lower standard of living in later life, according to new research from UK wealth manager Rathbones.

The survey was conducted by research company Pureprofile on behalf of Rathbones in May 2026.

The survey of 1,010 parents and grandparents who are funding education costs for children or grandchildren found that over one in four believe they will retire on a lower standard of living than originally planned, while 24 per cent expect to delay retirement and 17 per cent anticipate reducing pension contributions as a result of funding university education costs.

Among those expecting to delay retirement, 43 per cent believe they will need to work for at least three additional years, including 11 per cent who expect to postpone retirement by more than five years.

“It’s completely understandable that parents want to give their children the best possible start in life – and for many, that still means university,” Rebecca Williams, financial planning divisional lead at Rathbones, said. “But it shouldn’t come at the cost of their own financial security. Education is a worthwhile investment, but it’s important to be clear on the long-term cost and to balance that with your own plans.”

“We often hear from clients who are in a strong financial position and want to do as much as they can for their children but still worry about the long-term impact on their own wealth and retirement plans,” she continued. “Education can absolutely be a worthwhile investment, but it’s important to be clear on the long-term cost and to balance that with your own plans.”

Perceived value of university is becoming more contested
The findings come amid renewed debate around the value of university education and the challenges facing young people entering the workforce. A recent government-commissioned review, showing that the number of young people not in employment, education or training is at a 12-year high, has intensified scrutiny on university education.

Despite this, attitudes towards higher education appear increasingly divided. While 52 per cent believe that most well-paid jobs still require a university degree, many are weighing this against mounting concerns about student debt (42 per cent), the appeal of vocational routes (41 per cent), and weaker graduate prospects (31 per cent).

“With student debt now so significant, it can weigh on young people for years and start to shape the choices they’re able to make later in life. That said, from what we see with clients, many families still view university as an important stepping stone – they’re just being a bit more thoughtful about when and how they provide financial support,” Williams added.

Student debt concerns driving parental trade-offs
The findings reflect growing concern among families about the long-term impact of student debt, particularly as the student finance system produces uneven outcomes depending on earnings.

Separate Rathbones analysis shows that graduates are not affected equally, with middle earners often facing the highest overall repayment burden. Those starting on salaries of around £45,000 ($60,000) to £50,000 can end up repaying more than anyone else in cash terms, as they remain in the system the longest and interest continues to build over decades.

“Many parents would rather work a few years longer themselves than see their children start their careers under the weight of substantial student debt. Rising tuition costs and higher borrowing costs have only strengthened the desire among families to provide as much support as they can,” Charlie Newsome, senior investment director at Rathbones, said.

“With enough time, a disciplined savings plan and the right mix of investments, it is often possible to make meaningful progress towards both goals simultaneously,” he added. “The most successful financial plans are those that balance both objectives from the outset, rather than sacrificing one for the other.”