Apr 3 2006
Parents could find themselves paying thousands of pounds in financial support to take care of children that have already flown the nest, according to a new survey.
Asset manager Insight Investment reveals more than a third of parents are bankrolling their adult children up to £5,000 a year.
Some 36 per cent of mothers and fathers are dipping into valuable retirement funds to give regular financial support to their offspring.
Nearly two-thirds of 25 to 34 year olds (63 per cent) and nearly half of 35 to 44 year olds (46 per cent) admit to relying on funds from the family.
Gordon Phillips, head of retail at Insight Investment, says the source of the problem is unlikely to go away for a while.
"Unfortunately, increasing financial pressures such as soaring house prices and mounting student debt are unlikely to abate any time soon so empty nesters of the future should take heed and plan ahead," he said.
And parents are unaware when it comes to how long the support will last, with one fifth with children under 16 only expecting to support their children until the age of 18 or 21.
Mr Philips continued: "By making even small investments now, parents can prepare themselves for long-term investment in their kids, without impacting on their hard-earned retirement nest egg."
