The most common age to have a baby is 30-34. Since 2015, women have been more likely to have a baby over the age of 40 than under the age of 20. They’re more likely to have babies in their late 30s than their early 20s. The average age of fathers increased to 33.8, while mothers' average age remained at 30.9. There were 591,072 live births in England and Wales, the lowest number of births since 1977. The fertility rate in England and Wales dropped to 1.44 children per woman, its lowest since records began in 1938. The ONS has published details of Births in 2023: Births in England and Wales - Office for National Statistics
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Sarah Coles, head of personal finance, Hargreaves Lansdown: “We’re in the middle of a baby bust, as the number of births dropped to its lowest for almost 50 years. Those who do have children are doing so later in life, so if you’re planning on postponing having children, it’s worth considering your finances. People are having children later for all sorts of reasons - including the fact that women are more likely to be studying into their 20s, and then establishing their career. Couples are also more likely to live together at older ages before marriage or children are on the agenda. And young people are wrestling with higher property prices, so they’re still saving for a property at the age when their parents had moved into their own home and started a family.
The age people choose to have children isn’t up for debate: it’s nobody’s business but your own. But if you’re planning a baby later in life, it has the advantage that you tend to be on a firmer financial footing and more established in your career. You’re also more likely to own your own home. However, there are some extra financial issues to consider. Parents lose most of the ‘empty nest’ period before retirement, when traditionally they focused on retirement savings. It means you’ll need to keep up consistent pension payments throughout as many of your years as parents as you can - and prioritise it above the nice-to-haves.
Trading up into a larger property is more difficult when parents are older - if they’re looking for a bigger mortgage in their 50s they may have to accept a shorter term. It may also make it more difficult to clear debts before retirement. If your children go to university, it may coincide with your retirement. It doesn’t necessarily mean you need to work later, it just means you’ll need to set aside funds specifically to cover this period, in advance. One option is to put money aside in their Junior ISA, which will ensure the money is safely tucked away to the age of 18, where it can grow tax free ready for the expensive university years. You can pay up to £9,000 a year into a JISA.
Grandparents are older and may therefore be unable to help with childcare, so it’s essential to have a Plan B. In fact, grandparents may also have more needs, so parents find themselves becoming part of the sandwich generation. It’s worth knowing in advance the provisions your parents have made in case they need care as they get older, and the part they expect you to play. Make plans for the worst case scenario too. This is vital whatever age you are when you have children, but it becomes more pressing as you get older. Parents need to have life insurance in place to protect their children if they were to pass away, and should consider critical illness cover and income protection – both of which provide support if you suffer an illness or injury. It’s also essential to have a will in place, including details of who will take care of your children if something was to happen to you.”
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