Ageing population putting increasing pressure on family finances

As the Department of Health prepares to publish its green paper on long-term social care funding this month, research reveals a potentially difficult financial future for Britain's ageing population.

The Aviva Cost of Family Care study says six in ten (62%) over 50s worry that their pensions and savings are unlikely to see them through retirement.

The knock-on effect is creating a new generation of ‘baby gloomers' - those facing the prospect of simultaneously financing both their elderly parents and their own children:

Almost three quarters (71%) of adults in the UK fear their parents' shortage in retirement funding could cause severe problems for their own financial futures

Six in ten (60%) are concerned their parents will not be able to afford to stay in their existing homes in retirement - a quarter (25%) plan for their parents to live with them

One in ten (11%) say they are ready to cash in their savings and investments to fund their parents' retirement

Almost ten per cent are worried that their parents might not be able to pay for any required medical care during retirement

Many would like to support their elderly parents financially during retirement but, for two thirds (67%) say their own financial situation makes that impossible.

In fact almost half (43%) are delaying financial plans for their own retirement because of the current economic climate.

Paul Goodwin, head of pension propositions for UK Life, Aviva comments: "Future finances are one of the most crucial areas families need to discuss and a key area where people should seek independent financial advice. Almost half (45%) of adults told us they have no idea how their parents plan to fund their retirement, but six in ten (62%) admitted they feel uncomfortable asking their parents questions about their finances.

"According to our research the majority (93%) of ‘baby gloomers' would welcome a more consistent system for care of the elderly. The Green Paper is therefore a great opportunity to improve care, making it clearer for families what they are entitled to and where they should turn for advice and support."