Monday, March 15, 2010
PARENTS in Britain are being forced to postpone their retirement to meet the rising costs of supporting their adult offspring, a new study has suggested.
Research undertaken by The Children’s Mutual found more than half (57%) of parents with 18- to 30- year-olds quizzed said they had "no choice" but to retire later.
Four in 10 (43%) expected to work up to five years longer than desired due to the financial burden of their adult children.
Nearly one in 10 (9.3%) of the 1,484 parents questioned in January believed they would now be forced to work more than a decade longer, with some abandoning the dream of retiring altogether.
Approximately three quarters (75%) of parents originally planned to retire before they reached 65, but 40% have accepted the fact they will not stop work before the official retirement age.
Almost eight in 10 (79%) of parents claimed their ability to save for their retirement was affected by unplanned financial support needed by their offspring – with a third (32%) suggesting it had been significant.
David White, chief executive of the Child Trust Fund provider said: "Worryingly, the number of parents getting caught in this middle -age parent trap will almost certainly continue to rise.
"It’s clear that the concept of a retirement age will become increasingly fluid and for some it might even become totally irrelevant.
"It is imperative that we empower parents of today’s youngsters to ensure that their retirement dreams and the hopes for their offspring are not compromised.
He added: "Parents of today’s young adults face an unenviable choice – secure their retirement or fund their children’s futures.
"Despite their best intentions, our research shows that for millions of Britons adequate provision for both is currently well out of reach."
Dr Liam Foster, lecturer in social work at the department of sociological studies, University of Sheffield, added: "These findings are increasingly significant given the government’s aim to encourage tomorrow’s pensioners to become ‘rational actors’ and save for retirement."
The study found parents still fortunate enough to contemplate retirement have had to shelve aspirations, with a quarter (24%) expecting to forego travel plans. Another 14% plan to be more frugal in retirement than initially intended.
Eight per cent of parents with three children said they would not be able to retire.
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