You are in > manchester.com  > News > Parents pessimistic on children's prospects

Finance

Parents pessimistic on children's prospects

11/07/2008

More than a third (34 per cent) of parents fear their children will be living with them until their mid-30s, according to research.

Investment provider Skandia polled more than 2,000 people and found that, although most parents hope their adult children will become financially independent (83 per cent) and will buy a house (63 per cent), more than one in three (34 per cent) believed it was likely their children would be living at home until their mid-30s.

A similar number (40 per cent) feared they would be relied upon to clear their children's debts through adult life.

Wealthy parents (those with a household income of between £50,000 and £100,000) were most prone to fear they would end up bankrolling their adult children (44 per cent).

Michelle Cracknell, strategy director at Skandia, said: "The current economic climate and cost of living hikes are, no doubt, colouring many people's attitudes to money matters and predictions for the future.

"The prospect of funding and housing children through their 20s and 30s has, of course, financial implications on the parents who may have to reappraise their own financial life plans in order to help them protect and realise their own financial goals.

"The prospect of having to re-plan finances later in life is never welcome news; however, there are plenty of innovative solutions available to the canny investor. We encourage parents to seek financial advice whenever their life plans change."

Parents in London were those most likely to fear their adult children would continue to live at home (43 per cent), although Wales seems the place to avoid if you want to have a nice retirement. Almost three in five Welsh people (68 per cent) fear retirement would be extinct in the next 50 years.