Retiring parents face increasing financial pressure from adult children, according to new research from Aviva.
Parents approaching retirement face greater financial pressure as their grown up children expect ongoing handouts.
Although this will come as no surprise for nearly one in five (18 per cent) parents, who anticipate providing funds in the future, this is considerably lower than the three in ten (30 per cent) adult children who are banking on it.
Of those who expect to either give or receive financial support, helping with a house deposit is cited most often. Nearly two thirds (62 per cent) of parents anticipate helping their children to buy a home and almost half (44 per cent) of children are expecting it.
Grandchildren are the second most popular reason, with 47 per cent of parents expecting to help fund the next generation and nearly a third (30 per cent) of adult children relying on it.
Half (50 per cent) of parents who plan to support their offspring feel worry, concern or anger at the thought of helping out their adult children when retired.
Twenty nine per cent of parents worry that further handouts will limit their retirement income and 16 per cent are concerned they will have to continue working as a result.
Despite this, discussing retirement finances remains a taboo topic for a lot of families, with 41 per cent of parents saying they have never broached the subject with their children.
Yet three quarters (76 per cent) of parents would like to discuss pension plans with their offspring and 30 per cent would use it as an opportunity to understand joint concerns and expectations.
Over half (53 per cent) of adult children want to talk to their parents about pensions; with a quarter (25 per cent) saying it would help them understand their own concerns.
The lack of discussion on this subject could explain the alarming number of adult children who have little knowledge of financial products they will require themselves one day, says Aviva.
One in five adult children (20 per cent) admit to knowing nothing about pension planning, and an alarming 70 per cent do 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 said Clive Bolton, ‘at retirement' director for Aviva.
“By discussing plans sooner rather than later, families can avoid confusion and disappointment later on."
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