- Thursday, 4 March 2010Parents may need
IVA help as their adult children continue to "sap" their savings and investments.
New figures from Scottish Widows reveal that the average "savings sap" is £13,660, up from £11,800 last year, as parents give more to their struggling adult children.
One in ten parents who have given their adult children or grandchildren money has increased their own levels of debt, including mortgaging or remortgaging their property, states the study.
More than a third (38 per cent) are asking parents for money to pay off debt, and 34 per cent needed the extra funds for a house purchase.
Savings expert at Scottish Widows Iain McGowan said the figures highlight the "double whammy" of the recession.
"On the one hand, 'generation Y' is looking ever more to its parents for help as it struggles to get jobs, credit and mortgages - and to clear debt," he said.
"At the same time, the 'Bank of Mum and Dad' is not as readily available as it once was, often for the same reasons. This means that fewer parents can afford to give or loan money, while those who can, are being asked to provide more."
The overall effect is a fall in the "savings sap fund", added Mr McGowan.
Meanwhile, new figures from insurance and investment group LV= reveal that the cost of raising a child from birth to the age of 21 has now exceeded £200,000.
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