Parents are foregoing their pension savings in order to provide financial support for their grown-up children, a new report has shown.

The research has revealed that the average parent estimates that they will invest around £15,490 in each of their children aged 18 and over in order to cover expenses such as university tuition fees, debts, weddings and house deposits. 

However, if parents opted to invest this sum into a pension instead, a basic rate tax payer could accrue a pension pot of approximately £38,500 by 2032.

This figure would rise to £51,380 for higher-rate taxpayers, meaning that those supporting two grown-up children could be losing over £100,000 from their pension pot.

The Standard Life report also shows that around a third (30 per cent) of parents admit that they are failing to develop a long-term financial plan for the sake of their children, while 31 per cent have made such sacrifices in the past.