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News Release
Friday 26 September 2003
PAY BACK TIME FOR BRITAIN'S PARENTS
The tables are turning on the nation's thirty somethings, as they prepare to fork out to bolster their parents' financial future.
New research from Skipton Building Society shows the pension shortfall is set to hit the nation hard, with more than one in five (22 per cent) of 25-40 year olds expecting to dig deep and financially support their parents in their golden years.
Concerns are running high, with over two fifths (41 per cent) of adults worrying about their parents' financial situation. Many are prepared to stump up an average of £761 a month to help improve the quality of life of their retired parents - that's more than £1billion2 a month nationwide.
And their anxiety is justified - nearly one in five (19 per cent) grown up children say their mums and dads only have a state pension to rely on and a further one in seven (13 per cent) say their parents will still have between 5-20 years left on their mortgage when they hit retirement.
Cash is not the only offering adult children are making to increase their parent s' comfort as they grow older - a third (33 per cent) are prepared to make the ultimate self-sacrifice and invite their mums and dads to live with them.
Being a provider isn't easy. Many are considering a number of options to raise the money - nearly half (47 per cent) will forgo an inheritance, one in ten (10 per cent) will re-mortgage their property, 29 per cent will make cutbacks on their own lifestyle and a further one in three (34 per cent) will take their parents on holiday.
But it's not just about keeping parents in the lifestyle to which they've become accustomed, as there appears to be more essential financial shortfalls to consider. Nearly one in five of the respondents expect to pay for their parent s' retirement or nursing home and more than one in ten (11 per cent) assume they will need to pay out for healthcare.
Jennifer Holloway, head of media relations, Skipton Building Society, said: "The research shows that we're experiencing a complete role reversal, as grown up children make plans to support their parents financially.
"Although this is worrying, it's also reassuring to see traditional family values are still a priority in society today, as children consider inviting their mums and dads to move in with them. However, there are other options available, for example saving plans and investments, which are worth researching and exploring."
Ends
Editor's Notes
1 £76 = weighted average of results of how much people expect to contribute a month to their parents to help support them financially in their retirement.
2 More than £1billion (£1,053,412,592) = number of 25-40 year olds in Britain (13,860,692) based on the National Office of Statistics Census 2003 multiplied by £76.
Methodology:
The research was carried out online via Tickbox.net. In total, 1, 032 adults aged between 25-40 years of age were questioned. Respondents were asked to consider their parents / guardians when answering the questions.
For further information journalists should contact the Skipton Press Office.