Financial woes ‘test family ties’

Financial problems among British consumers are testing family ties by forcing three generations to live under the same roof, new research has suggested.

A study carried out recently by Prudential has shown that a third of all parents expect to see their children living with them until they are at least 21 years old, in most cases due to financial concerns.

Issues of debt management are among the main reasons why there are now thought to be more than 800,000 people living in the same house as two other generations of their family.

Furthermore, the financial implications of having elderly parents and young children to support are causing significant problems for many within the “middle generation”.

Prudential’s Gary Shaughnessy said: “For the middle generation the financial drain of providing support for both the younger and older generations could have a detrimental impact on their ability to save adequately for their own retirement.”

A report released last week by Moneysupermarket.com suggested that
credit card debt is being used more and more by UK consumers looking to borrow money in the medium term.