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Offspring's needs impinge on retirement plans
29 February 2008 12:00
An increasing number of parents are helping their adult children out financially to the detriment of their own retirement preparations, according to a new survey.
The proportion of mums and dads dishing out thousands of pounds to their grown-up offspring and grandchildren rose from less than two in five in 2006 to well over half last year, Scottish Widows' poll revealed, with the average handout standing at £12,610.
Over a third of these parents admitted that in helping their kids they were impairing their own capacity to save for retirement, yet nearly two out of three claimed to be only too happy to help, while two out of five felt that their children's needs were greater.
Indeed, the share of adults receiving financial assistance from their parents who used it to pay off debts nearly doubled in 2007 to over two out of five, while nearly a third needed this aid for buying a home and a similar proportion required it for their car.
Scottish Widows' savings expert Anne Young warned that people are turning to their mums and dads for cash instead of cutting their spending and that their parents need to rapidly replace the £60 million being taken from their funds for this purpose.
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