LV reports parents fork out £233 billion to support their
on: September 30, 2008, 8:56 am
Release Author: LV=
Release Summary: New research from LV= reveals that parents spend
a staggering £233 billion supporting their adult children
Release Body: New research from insurance, pensions and investments
group LV= reveals that parents spend a staggering
£233 billion* on supporting their adult children (children
aged 18 years or over), and are foregoing their own financial
freedom to support their children.
LV study, which
was carried out amongst adults aged 40+ years who have children
18+ years, found that 94% of parents continue to contribute financially
towards education and other major purchases such as houses and
cars, plus living expenses, once their children have reached ‘adulthood’.
half of all parents surveyed (55%) admitted to helping their adult
children with general living costs, indicating that the ‘credit
crunch’ and rising living costs are impacting on the finances
of adult children.
Snell, Communications Director at LV=, said: “Parents
certainly like to financially contribute, if they can, towards
large purchases for their adult children, such as weddings and
deposits for first homes. However, it seems that the current economic
climate is impacting on day-to-day finances. Parents are the hardest
hit, with a large proportion admitting that they are helping to
cover their children’s living expenses, as well as meeting
their own financial commitments.”
quarter (23%) of parents aged between 40 and 49 years still have
children aged over 25 years old living with them, indicating that
despite falling house prices, adult children are not in a hurry
to leave the nest, and may not be able to afford to either.
to the research, it is not just their own children that parents
are paying for either. Of those parents with grandchildren, 79%
reported supporting both their children and grandchildren.
half of all parents aged 70 years or older (45%) are still helping
their children financially. Despite generally being retired and
living on a reduced income, 55% of these parents state that they
help their children because they feel it is their responsibility
as a parent, and 42% stated that they support their children ‘because
they can afford to’.
contrast, less than one third (29%) of the parents questioned
said that they had received financial help from their own parents
after they had left school. Now, 62% of parents say they help
their adult children because ‘they need the assistance’
and 17% of parents say that their adult child actually asks them
for financial support.
Snell concluded: “Our study shows that parents can no
longer expect their children to pay their own way once they have
flown the nest. More than ever it’s true to say that having
children means signing up to a lifetime financial commitment.
parents will have had to put some plans on hold to manage the
costs associated with raising a family, and once their children
are old enough, parents should begin to encourage their own children
to make small provisions, so that the financial burden can be
reduced and parents can enjoy more financial freedom in retirement.”
details can be found in the LV Media Centre
figures, unless otherwise stated, are from YouGov Research. Sample
size = 1,184 adults 40+ years old with at least one child aged
18+ years. Fieldwork undertaken 5th-6th June 2008.
Estimation by LV=, based on BMRB and Government
Actuary’s Department data.
LV= and LV= Liverpool Victoria are trademarks of Liverpool Victoria
Friendly Society Limited and LV= and LV= Liverpool Victoria are
trading styles of the Liverpool Victoria group of companies. LV=
providing a wide range of reliable and good value financial products
– from insurance
to savings and investments.
Victoria Friendly Society Limited (LVFS) is authorised and regulated
by the Financial Services Authority and entered on the Financial
Services Authority Register, No. 110035. LVFS is a member of the
ABI, AFS and ILAG. Registered address: County Gates, Bournemouth,
Details: For further information please contact:
69 Park Lane
0208 256 6714