Adult children 'sponge savings off parents'
The amount parents give or lend to their adult children has grown over the past year, despite the credit crunch.
Adult children are continuing to deplete their parents' savings despite the ongoing economic downturn, according to research conducted by Scottish Widows.The pension provider found that more than half of parents with grown-up children have given or loaned their children a "substantial" sum of money - averaging £11,776- an amount which has increased by eight per cent since last year.
Scottish Widows claimed that such generosity on the part of parents is leaving them "significantly out of pocket" and one in six of these parents has increased their own levels of debt in order to help out their children.
Gordon Greig, head of savings and investments at Scottish Widows, said: "Not only does this leave parents vulnerable to any unforeseeable circumstances such as salary cuts or job losses, it can also affect them in retirement, meaning they may have to work longer, or make their retirement savings stretch further."
Figures released recently suggest that pensioners currently face a higher rate of inflation than the general population, leaving them with less disposable income.
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