You are here: Home - Retirement - Retirement planning - News -

Move over millennials, here come the ‘boomerang parents’

0
Written by:
04/06/2019
Rising house prices have forced millions of young adults to move back in with their parents, creating what has become known as the ‘boomerang’ generation. But soaring care home costs could soon create a new a generation of ‘boomerang’ parents – retired mums and dads who move back in with their adult kids.

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.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Why NS&I may need to trim interest rates for millions of savers

Savers continued to plough money into National Savings and Investment (NS&I) in April, though at a slower...
Why NS&I may need to trim interest rates for millions of savers

NS&I makes it easier to top up Premium Bonds

NS&I has started rolling out an alternative way to make payment, which should make it easier and more secu...
NS&I makes it easier to top up Premium Bonds

Move fast as one-year savings rates hit 5.25% PLUS all the week’s best savings accounts

A new one-year fixed-rate account has launched paying 5.25% from National Bank of Egypt, through Raisin UK.
Move fast as one-year savings rates hit 5.25% PLUS all the week’s best savings accounts

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week