Young adults 'putting parents' budgets under pressure'

24/02/2009

Parents' retirement plans are to come under severe strain, as their credit-crunched adult children require more and more financial support.

A new report from The Children's Mutual and the Social Issues Research Centre (SIRC) showed that 41 per cent of Britain's 18 to 25-year-olds have their families pick up the tab for their day-to-day costs.

The study also found that four in five people in the age group think that they can be called "financially independent" - even though they are being supported by their parents.

More worrying still, two in three who call themselves "completely" independent get financial help in this way.

Commenting on the report, EuroDebt director Kevin Still said: "As a Debt Management Company, we see many new clients under 30 that are still very reliant on their parents for financial support, especially if there are grand children involved. It is often the case that the 'bank of Mum and Dad' is already under financial pressure and entering a Debt Management Plan finally reflects the reliance on the parents to make up the monthly shortfall in terms of income and expenditure."

He added: "There has been increasing reference to the 'sandwich generation', where parents are both supporting the grown children and having to financially support their own parents. Each household budget needs to be looked at in isolation to determine how the books balance."

Tags; Housing Debt and Bills, Retirement Money Problems, Credit Card Lifestyle,

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