Almost a third (30%) of parents with children under the age of 18 have said that the cost of living crisis is making their financial situation “difficult”, compared to 22% of people without children, Standard Life has found.

In the firm’s Retirement voice report, which included responses from more than 6,000 people, it was found that for those who are parents of children under then age of 18, over two-thirds (69%) worry that they’re not saving enough now for when they’re older.

Furthermore, 65% of parents have said they worry about spending too much now just in case they run out of money in the future.

Standard Life has said this survey comes during a second full year of high inflation, with the cost of essentials like food and household bills still outpacing income rises for many. For parents this is combined with increasing expenses related to childcare, schooling, kids’ activities and rising housing costs related to sharp interest rate rises – all contributing to the financial strain that families are likely to face.

Managing director for retail direct at Standard Life, Dean Butler, said: “Try not to lose sight of your own financial goals amongst the mayhem of parenting as even the smallest of saving will help the family’s long-term financial wellbeing. Many of us can relate to the pressures that parents face juggling immediate financial priorities with trying to save for the future, be that for a particular goal or into a pension. It’s important however that parents don’t sacrifice their own saving and retirement goals entirely to focus solely on the here and now.”

Standard Life stated that as families grow, so do demands on household budgets, which can lead to increasing financial pressure on parents as they grapple with providing a stable environment for their children and careful financial planning and decision making.

The pension firm continued by saying that it is “important that parents don’t sacrifice their own saving and retirement goals entirely to focus solely on the here and now”.

Butler added: “Retirement may seem a long way down the road but thanks to the power of compound investment growth, the earlier you start saving the more you will have when you get there. Even contributing small amounts to your pension all adds up over time – our calculations found that contributing just 1% more than the minimum required under automatic enrolment could lead to £58,000 more in retirement.

“In some good news for parents with very young children, there could soon be some respite from the monthly squeeze after the Chancellor announced an expansion of free childcare for one and two-year olds in the Budget – hopefully, this will give parents the opportunity to take a breath and start to build a plan for their financial futures.”

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