One in three people dreads the possibility of simultaneously financing their children and parents, according to research by Norwich Union.
The survey of more than 1,000 people shows six in 10 over 50s admit their pensions and savings will probably not see them through retirement, leading 51% of adult children to fear the knock-on effect on their own financial futures.
A quarter of adult children feel ready to cash in their savings and investments to fund their parents’ retirement while 24% would consider taking their parents to live with them and 21% would change their own lifestyles to find extra money.
A spokesman for Norwich Union says: “While adult children told us they fear supporting their own parents, an incredible two thirds admitted they have no financial plans for their own retirement.”
Two in five adult children suspect their parents might struggle financially in retirement and 24% fear having to radically downsize their own lifestyles. A total of 45% fear losing their own savings while 37% have concerns about having to work longer than planned and 25% worry about not having the finances for their children’s university education.
However, 48% have no idea how their parents plan to fund their retirement and 61% could not imagine talking to their parents about their finances.
Norwich Union says: “Unless we tackle this now, we face a never-ending cycle of financial struggle. The first step is simply for families to talk about their finances together and break this taboo.”
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