British parents are investing large sums of money in their adult offspring, new research suggests.
Over a third of parents in the UK are spending as much as £5,000 on their children every year, according to a survey from asset manager Insight Investment.
Instead of saving towards their future retirement, parents offer financial support to their adult children who are studying at university or trying to get onto the property ladder.
Insight Investment found that 63 per cent of those aged between 25 and 34 years rely on financial support from family members, while the figure for 35- to 44-year-olds is 46 per cent.
Commenting on these findings, the head of retail at Insight Investment, Gordon Phillips, says that parents of adult children should be prioritising their own financial independence.
However, many of these 'empty nesters' are finding that "pressures on the parental pursestrings are eating into their potential retirement pot".
Mr Phillips says soaring house prices and mounting student debt, which are the key contributors to these pressures, are unlikely to abate any time soon.
Therefore, he advises 'empty nesters' of the future should to take heed and plan ahead for their retirement.
"By making even small investments now, parents can prepare themselves for long-term investment in their kids, without impacting on their hard-earned retirement nest egg," he concludes.
Parents dip into retirement pots for kids, research shows
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Parents dip into retirement pots for kids, research shows
Mon, 03 Apr 2006
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