By: Kay McLellan
One in five parents readying themselves for retirement anticipate giving their adult children financial help, while 30% of their offspring are relying on it, according to Aviva.
Research by Aviva showed that helping with a deposit for a house is the top reason for giving or receiving financial support, with 62% of parents expecting to help out their kids to buy a home, while 44% of children are relying on it.
However, financial help does not come without its issues, with half of all parents who plan to support their children feeling worry, concern or anger at the thought of doing so into retirement.
In addition, 29% are worried about how these financial handouts will affect their own retirement income, with 16% concerned they may have to continue to work as a result.
Children are also concerned about their retired parents with four in ten worried about how they will cope in general and 16% anxious they will need to support them financially.
However, discussing retirement finances is a taboo subject for many, with 41% of parents saying they would never broach the topic with their children, despite 76% saying they would like to and 53% of adult children wanting to talk to their parents about pensions.
Clive Bolton, ‘at retirement' director for Aviva, said: "The financial landscape and the pressures on the modern family have massively changed over the last decade, as has the profile of a typical retiree.
"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. By discussing plans sooner rather than later, families can avoid confusion and disappointment later on."
URL to Original Article: http://www.mortgagesolutions-online.com/mortgage-solutions/news/1729355/house-deposit-reason-apply-bank-mum-dad
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