Move over millennials, here come the ‘boomerang parents’
According to a new study, one in six millennials expect their parents to live with them in the future to save on care costs.
The research by wealth manager Charles Stanley also found one in nine young adults plans to move in with their parents to look after them, while one in ten expects to purchase a joint property for them and their parents to live in.
With residential care bills costing anything from £52,000 to £92,000 a year, children may not inherit as much as they expect from their parents.
Some 40 per cent of parents think that long term care costs will impact the inheritance they leave their children, reducing how much they leave by 40 per cent on average.
John Porteous, a chartered financial planner at Charles Stanley, said: “Paying for long term care for the elderly will be one of the critical financial issues for both families and society in future. Increasing care costs mean many people will have to sell their homes or eat into their wealth to pay for care.
“This has the potential to transform the way we live, with a generation of people moving back in with their children to save on care costs – the Boomerang Parents. It means children may not receive the inheritance they expect to fund their own retirement or to pay off their mortgage.”
He continued: “By starting to plan early and getting expert advice, parents can ensure they can prepare for care or retirement home costs and ensure they maximise any inheritance pot they can pass on to loved ones.”