New research conducted by Norwich Union, soon to be Aviva, has found that two thirds of adults (68%) would like to help fund their parents in retirement, but are unable to because of their own financial situation. Fewer than one in 10 (7.9%) in this age group are actually giving their mums and dads any form of financial assistance.
However, nearly three quarters of adults questioned (72%) admit they are worried that their parents may struggle financially in retirement. Most common fears are that parents may not be able to afford to stay in their existing home (60%), that they may have to ‘do without' luxuries they are used to (27%) and more significantly that they may not be able to afford any required medical care (9%).
And regardless of nine in ten adults (88%) saying their minds would be put at ease if they knew their parents had plans for retirement, the money ‘taboo' prevents people asking, with seven in ten (70%) saying they feel uncomfortable talking to their parents about their finances.
The report also shows clear evidence of younger people prepared to alter their own lives to assist their parents. More than a quarter (26%) say they would cut back on their own spending to free up cash, while one in six (17%) would be willing to give mum and dad a share of their savings. On a more practical level, four in ten (39%) would be prepared to adapt their work or lifestyle to care for their parents, and a further quarter (25%) would invite their parents to live with them.
However there is clearly a knock-on effect, as seven in ten (71%) say they are worried how they will manage their own finances if they have to support their parents through retirement. This fear has been heightened by the current economic climate, with six in ten (60%) saying they have had to delay their own retirement plans, due to the credit crunch. Almost half of these say that worry they will have to work much longer than they had planned.
Notably almost half of those questioned (47%) say planning for their retirement is their biggest financial concern, above paying off their mortgage (27%). Seven in ten (70%) say that they do not think that their pensions and savings will be sufficient to support them through retirement.
