Adult children adding to the debt woe of retired parents?

Debt concerns among retired parents are being exacerbated by their adult children, new research has suggested.

A study conducted by Aviva has shown…

Debt concerns among retired parents are being exacerbated by their adult children, new research has suggested.

A study conducted by Aviva has shown many offspring believe the bank of mum and dad to remain open despite their term of employment coming to an end.

The investigation found 18 per cent of parents expect their adult children will require financial assistance when they finish working.

However, 30 per cent of the youngsters themselves are hoping for some monetary aid from their mothers and fathers when they have retired.

Help with securing a deposit for a house was cited as the main reason parents would be expected to dip into their pockets for their kids, with 62 per cent of the guardians anticipating to help their sons and daughters in this area and 44 per cent of children expecting a contribution.

The second most popular factor was grandchildren, with 47 per cent of parents believing they will fund the next generation and 30 per cent of their offspring expecting it.

But it appears helping out their children is a weighty burden on many mums and dads.

Half (50 per cent) of them claimed to feel worry and even anger at the prospect of bailing out their kids and 29 per cent are concerned such handouts will impact their retirement income.

Clive Bolton, ‘at retirement’ director for Aviva, said: “Rather than inheriting from their parents, our research suggests many adult children now expect financial help from their parents at a time of life when they may struggle to give it.”

AXA recently warned a considerable number of over-65s are suffering from Money Sickness Syndrome as their finances are affecting their physical and mental health.

By Joe Shervin

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