Parents look to ‘Bank of son and daughter’ to fund old age
Many parents in the UK admit that they have saved so little for their old age that they may have to rely on their children to fund their retirement, according to a report from Yorkshire Bank ISAs and Investments.
The survey found that 27% of parents are hoping their children will support them financially in old age, which is hardly surprising as Yorkshire Bank also discovered that only 13% of us are investing money each month into a retirement fund.
Around 40% admit that they have no real savings for old age, although 60% conceded that they should be doing something but were actually prevented from doing so by the day-to-day costs of living.
Gary Lumby, Yorkshire Bank’s head of retail, said: “By not saving for the future, parents appear to be aware that they are storing up hardship for themselves. Many are presuming their children – ‘The Bank of Son and Daughter’ – might be the answer to all their financial problems.
“But you cannot depend on this and people should start saving now for their retirement. Financial advisers would recommend that people reaching their thirties should be investing at least 10% of their income into a retirement fund to avoid the need to badger their children into giving them money.”