1 in 7 adults provide financial support to both parents and children
A new report from The Co-operative Bank, uncovers a financially squeezed generation of adults who in the current economic climate are struggling to provide financial support to both their parents and children.
The first in a series of comprehensive reports by The Co-operative Bank on ‘Modern Families and Households' reveals that with modern trends such as having children later in life and people living longer, there is a squeezed generation in the middle who are simultaneously financing both their children and parents.
The findings show that currently just over 1 in 7 parents (15%), who have children in their household, are also at the same time providing financial support to their parents.
The research highlights that those parents who have children at home are under 18 years old are hardest hit financially, paying out on average £3,505 a year to support their children and parents. This equates to almost a fifth of the average UK take home salary.
And even when the kids reach 18 years of age, rising costs of property and living are ensuring the ‘bank of mum and dad', still remains firmly open, with these parents paying £2,543 a year to finance both generations.
The report also shows that in the current economic climate, two-thirds (65%) of this squeezed population feel the pressure of supporting both sets of generations is putting their finances under strain.
And according to the results, over half (58%) of this squeezed generation believe that the financial burden of supporting parents and children is preventing them having the lifestyle they might previously have envisaged having at their age.
Robin Taylor, Head of Banking at The Co-operative comments "The report shows how the changing nature of modern families and cost pressures of living in the current economic climate, are placing real financial pressures on the shoulders of today's middle generation"
"Compared with previous generations, the higher costs of housing, providing care for the elderly and everyday living, have resulted in a squeezed generation, who are having to re-adjust their views of the lifestyle they thought they would have been enjoying at their age."