Thirtysomethings financial dependence putting parents at risk
THIRTYSOMETHINGS ARE RELYING so heavily on their parents financial support, that they are endangering their financial security, researchers say.
The increase in university tuition fees, living costs and rocketing house prices means many young adults are still dependent on their parents.
A huge 95% of parents think they will be supporting their children well into adulthood, according to a report by saving specialists the Children’s Mutual.
The dependence from offspring means many parents are digging into their pension, savings and in some cases even remortgaging to help their children financially
In a study by the Social Issues Research Centre of 1,000 parents questioned for the Coming of Wage report, just 5% said they expected to stop funding their children when they left home.
David White, chief executive of Children’s Mutual, pointed out that the average age of a first-time house buyer was now 34, indicating parents were supporting children well into adulthood.
Nine out of ten parents said they would help children through university and half said they would help them get on the property ladder.
Even more generous parents – four-tenths – said they expected to fund business start-ups for their offspring and 35% said they would pay for their children to go travelling.
Mr White explained: ‘They are in a vicious circle where they are raiding their savings, holding back on pretty significant pension contributions or remortgaging their house at the very time when they hoped they would be paying the mortgage off.’
Adding: ‘It’s not really a choice because parents want to help their children.’