Financial pressures increase on families

| February 13, 2008 | 0 Comments

A report published by Norwich Union has established that couples with young children and ageing parents are struggling to cope with record financial responsibilities.

Norwich Union interviewed over 1,000 working adults about their personal lives for the report and established that these people have too many responsibilities and too little money to deal with them.

The report discovered that they can expect a bleak financial future as they are spending so much looking after the young and the old that they are left with little or nothing for themselves.

It revealed that they will have to pay or at least help to pay, for their parents’ retirement while struggling to find money for their own children. Almost 50% worry that their ageing parents will be unable to pay for the whole of their retirement.

The survey established the many sacrifices young parents are making, or considering making, to help their family members.

At least 25% of young parents are preparing to cash in savings and investments to pay for their parents’ retirement. The same amount is considering moving elderly parents into their home to save money. Furthermore, 20% said they would change their lifestyle to find the extra to pay for their parents.

The report warns that 63% have no financial plans for their own retirement with many facing a tough choice between paying for their parents or for their children to go to university.

Scott Brown of Norwich Union commented on the findings and said people face a never-ending cycle of financial struggle.

For many older parents there is another complication - looking after their grandchildren. A recent report established that grandparents are providing financial assistance to their grandchildren in order to get them on to the property ladder.

11% of British grandparents have expressed concern that the child’s parents are unable to provide adequate financial support required to get their child onto the property ladder.

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