Almost nine in ten British families (89%) are not prepared to financially support their parents in old age - with more than a third (39%) expecting their parents to rely on the state to fund the expenses commonly associated with old age - according to new research from engage Mutual Assurance.
With around 850,000 three generation households* already within the UK and estimates suggesting there will be over 15 million over-65's in the UK within the next 70 years**, the latest findings from engage Mutual Assurance suggest 'three generation Britain' is at risk of not only being unprepared for the basic costs of caring for elderly relatives, but also the subsequent expenses after they're gone.
engage Mutual Assurance asked a representative sample of over 1,500 Britons how they, or their parents, would fund the cost of care in later life.
Key Findings include:- More than eight in ten (83%) cannot afford to support their parents using their current savings pot
- Just one in two anticipate their parents being able to fund their old age and beyond with pensions (50%) or savings (49%)
- One in five families will invite their parents to live with them (14%) or other family members (5%)
- As many as 14 per cent of families have no idea how their parents old age will be fundede
- 13 percent of 30 to 50 year olds and 5 percent of over 50 year olds still have no idea as to how they will fund the cost of their parents care, suggesting that even those with ageing relatives are unprepared
Karl Elliott, 3GB spokesperson for engage
“Recent reports show raising a child to the age of 21 is costing today's parents as much as £166,000***, and with older relatives living for longer and the rising costs of living, providing financially for family members is becoming increasingly difficult to afford. It's a concern that many people aren't aware of the costs of supporting their parents in old age, let alone what they can do to help make provisions for them, given the financial sacrifices these parents have made for their children.”
“With an emerging trend towards three-generation households in the UK, and the growing financial pressures of living longer, it is important that people consider how they will cope financially with old age, particularly if their younger and more senior dependents are increasingly looking to them for support”
“The financial sector has tended to focus primarily on the concerns of middle aged Britain. engage Mutual Assurance offers simple solutions that will help today's changing families to prepare for the financial issues which arise at different stages of life.”engage Mutual Assurance can be contacted on 0800 169 4321 or by visiting www.engagemutual.com
The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.
Jo Winser/Derek Gilmour
FD Consumer Dynamics
020 7269 7236 / 020 7269 7265
jo.winser@fd.com / derek.gilmore@fd.com
Notes to editor:
1. If using this article on a website, please link to www.engagemutual.com using the following hyperlink text : engage Mutual Assurance - meeting the changing needs of today's modern families
2. engage Mutual Assurance is a trading style of Homeowners Friendly Society (HFSL) and it's wholly-owned subsidiary engage Mutual Funds Limited (EMFL).
3. engage Mutual Funds Limited (EMFL) is a provider of the Child Trust Fund direct and in partnership with partners including Legal and General, ASDA and Debenhams stores and NAAFI Financial.
4. The organisation is title sponsor of the engage Super League - which sees 12 teams from across the UK and France battling for a place in the engage Super League Grand Final at Old Trafford stadium in Manchester. The teams are Leeds Rhinos, Wigan Warriors, Bradford Bulls, Castleford Tigers, St Helens, Huddersfield Giants, Hull FC, Salford City Reds, Wakefield Trinity Wildcats, Warrington Wolves, London based Harlequins RL and French team Catalans Dragons.
5. engage is proud to partner a charity which shares our consideration for balancing risk and reward - Smart Risk Foundation UK. It helps youngsters across the UK to identify the risks in their everyday lives in the smartest way, so that they can enjoy life to the fullest. Smart Risk Foundation's registered charity number is 1096081, www.smartrisk.org.uk.
6. engage Mutual Assurance is headline sponsor of the engage International Open 2006 and the engage Ladies World Matchplay 2007, both part of the World Bowls Tour.
7. engage supports mutuality, friendly societies and the regional financial services industry through links with the Association of Mutual Insurers, the Association of Friendly Societies, Mutuo and Leeds Financial Services Initiative.
8. Established in 1980, Homeowners Friendly Society Limited (HFSL) is Registered and Incorporated under the Friendly Societies Act 1992, Reg.No.964F, it's wholly owned subsidiary engage Mutual Funds Limited (eMFL) is Registered in England No 3224780. Both are authorised and regulated by the Financial Services Authority (FSA). 9. Homeowners Friendly Society Limited's FSA Register number is 110072 and engage Mutual Funds Limited's FSA Register number is 181487. You can check this on the FSA's Register by visiting the FSA's website www.fsa.gov.uk/register or by contacting the FSA on 0845 606 1234