Parents Use Savings To Support Adult Children

(Telegraph) – PARENTS ARE USING THOUSANDS OF POUNDS of their own savings to support their grown up children amid the recession, it is disclosed.

During the past year, they withdrew a fifth of their hard-earned savings to help their adult children with living costs and unexpected expenses.

The figures are a fresh blow to parents who are being squeezed financially from all directions as they save for their own retirement, provide care for elderly parents and fund their grown-up children, known as kidults or the boomerang generation if they move back home.

Experts and politicians said the phenomenon was being exaggerated by the recession and record youth unemployment, which has reached almost one million among 16 to 24 year olds.

And they warned the extra financial burden being placed on parents would continue next year.

Shadow Work and Pensions Secretary Theresa May said: “These figures expose the huge burden this recession is having on hardworking households across the country.”

Arek Ohanissian, an economist at Centre for Economics and Business Research, said: “But the recession means this problem is also affecting parents who have their own financial difficulties and it is not a situation that is going to go disappear any time soon.”

Parents with grown up children have an average of £11,800 in cash savings and gave them 18 per cent of this amount during the past year, the equivalent of £2,142, according to the findings by high street bank Abbey.

It also revealed more than a million – or one in five – people aged between 18 and 24 has either moved back in with their parents or stalled plans to move out during the past year.

And around 6 per cent of 25 to 34 year olds and 5 per cent of 35 to 44 year olds have also returned to the family address.

Andy Smith, spokesman for Abbey Savings, said: “The return of grown-up children to the family home can be a shock for parents who have no doubt become used to the quiet life.

“While many parents can live with more noise and a bigger laundry pile, many may be unprepared for the financial impact of their return home.”

%d bloggers like this: