Just under two-thirds (65%) of families are currently or expect to be supported by grandparents’ contributions to education costs.

Primarily, this financial support is provided through cash gifts directly to grandchildren, but cash gifts to parents, direct payments to educational institutions and money set aside in savings and investments are also popular choices.

Consequently, over two-thirds (69%) in Scotland expect their retirement plans to be affected with 27% reducing pension contributions, 21% preparing to retire on a lower income or standard of living, and 22% expecting to delay their retirement.

The impact on delaying retirement is not insignificant, with 43% saying they will need to push it back by at least three years

Stephanie Ebner, Financial Planning Lead based in Rathbones’ Glasgow office, says: “We are seeing more parents and grandparents stepping in to support education costs even if it means their own financial priorities become more complex.

“While many parents and grandparents want to help ease the financial burden on their families, it is important that this generosity does not come at the expense of their own long-term financial security.

“Decisions such as reducing pension contributions or delaying retirement can have a lasting impact, particularly given rising living costs and longer life expectancies. Taking a structured approach whether through tax-efficient gifting, planning investment withdrawals carefully, or building education support into a wider financial plan can help families strike the right balance between supporting the next generation and protecting their own future.”

These findings highlight the need for careful financial planning to ensure that generosity today does not compromise financial wellbeing tomorrow.

VAT on private school fees and the additional cost of living students face at university have exacerbated the pressure on family finances. Early and proactive financial planning can help parents and grandparents support education costs without jeopardising their own retirement goals.