The financial stains of parenthood
Posted: 03 Apr 2006 10:36:53 GMT
New research has found that more than a third of parents in the UK are paying up to £5,000 a year on their adult children, with assistance in the property market making up a significant proportion of this outlay.
A survey from Insight Investment shows that 63 per cent of 25 to 34-year-olds and almost half of 35 to 44-year-olds rely on financial support from their parents.
As property prices continue to soar, first-time buyers are finding that the first step onto the property ladder is more difficult than they had imagined and parents are inevitably stepping in to provide assistance.
Around 49 per cent of younger parents in the UK admit that they fully expect to offer their children a financial leg-up when they reach the stage of looking for a home.
It is a statistic that again highlights the importance of considered financial planning, while it also draws attention to the need to avoid superfluous spending when looking for a property.
"At a time when empty nesters should be prioritising their own financial independence, many are finding that pressures on the parental purse-strings are eating into their potential retirement pot," said Gordon Phillips, head of retail at Insight Investment.
With the rise of private online house selling and an increasingly price-conscious market, many young buyers are easing the burden on their parents, who are in turn able to turn their attention to their own financial predicament.