One-in-five children support poor parents, says survey

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%) 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%) of adults worrying about their parent s' 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 – more than £1billion a month nationwide.

And their anxiety is justified – nearly one in five (19%) grown up children say their mums and dads only have a state pension to rely on and a further one in seven (13%) 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 parents' comfort as they grow older – a third (33%) are prepared to make the ultimate self-sacrifice and invite their mums and dads to live with them.

Being a provider is not easy. Many are considering a number of options to raise the money – nearly half (47%) will forgo an inheritance, one in ten (10%) will re-mortgage their property, 29% will make cutbacks on their own lifestyle and a further one in three (34%) 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%) 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.”

(gmcg)