Lost generation ‘are relying on parental financial support’

Young adults are attempting to stave off debt by relying on their parents for financial backing, a study has revealed.

The average ‘savings sap’ is up this year, from £11,800 to £13,660, according to the Scottish Widows Savings and Investments annual report.

It appears the younger generation have been hit hard by the economic downturn and are struggling to find work – resulting in a reliance on the pockets of mother and father, who themselves are struggling to cope.

Iain McGowan, savings expert at Scottish Widows, explained: “This means that fewer parents can afford to give or loan money, while those who can, are being asked to provide more.”

The research discovered that 82 per cent of parents who gave money to family members did so by taking from their own savings.

Earlier in the week, vox pops conducted by Adfero found that the general public considered their financial situations to be no better off this year.

By Joe Shervin