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No retirement for Bank of Mum and Dad

No retirement for Bank of Mum and Dad

Category: Retirement

Updated: 06/02/2012
First Published: 24/08/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

It seems that the Bank of Mum and Dad will never be able to shut its doors.

New research by Aviva reveals that parents approaching retirement are facing greater financial pressure because their grown-up children are asking for ongoing handouts.

One in five (18%) parents who are nearing retirement expect that their children will need financial help in the future, according to the research.

However, some unsuspecting parents may be in for a shock, as nearly a third (30%) of grown-up children say they anticipate asking their parents for money in the future.

The research also indicates that parents are being emotionally affected by their children's financial woes, with half (50%) of those surveyed feeling worry, concern or anger at the thought of having to support their grown-up children once they have retired.

Yet, despite what they may feel, 41% of parents say they have never discussed retirement finances with their children. And, alarmingly, 70% of the grown-up children surveyed said they did not know what an annuity is.

"Rather than inheriting from their parents, our research suggests many adult children now expect financial help from their parents at a time of life when they may struggle to give it," commented Clive Bolton, retirement director at Aviva.

"By discussing plans sooner rather than later, families can avoid confusion and disappointment later on."

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If you can't find exactly what you're looking for there, we've also recently partnered up with Premier Retirement Services, giving you access to their online annuity planner service.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.