Adult kids leave parents with shrinking savings
03 March 2010 12:08:13
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| Parents' savings accounts are being plundered by adult kids. |
The company surveyed 5,349 adults between December 8th and 10th 2009 and found that the average amount given or loaned by parents or grandparents is now £13,660, up from £11,800 the previous year.
In over one-third of cases, the money was needed for day-to-day expenses, while 38% of respondents said the money had been used to pay off adult children's debts.
One in ten people surveyed admitted that they had increased their own levels of debt in order to help their offspring.
Iain McGowan, a savings expert at Scottish Widows, described the situation as "worrying", as parents with depleted savings accounts will be more vulnerable to unforeseen circumstances such as salary cuts and less prepared for retirement.
"The earlier parents and children get into the habit of saving the better," he advised, adding that putting money into a tax-efficient savings vehicle such as an ISA can make a "big" difference.
ISA provider Legal & General has predicted a "marked return" to stocks and shares ISA investment in the final weeks of the 2009-2010 tax year because of the restricted returns from cash savings at present.
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