Middle-aged bale out big spenders

20 September 2005
Young and old people who get into financial difficulty rely on the middle-aged members of their family to help them out, according to a survey by Portman Building Society.

The survey found that a fifth of middle-aged relatives felt that it was necessary to help out younger members of their family who were becoming financially over-burdened.

Of the young people surveyed, three-quarters said property was the main financial burden, while over half were concerned about student loans and credit card bills.

Group communications manager at Portman Building Society, Helen Shaw, said: "The financial pressures of modern life are creating a potential double whammy for the middle generation who are increasingly required to come to the rescue of both parents and children.

"With concern over high house prices, personal debt, inadequate pensions and spiralling council taxes and education costs it would appear that these worries are unlikely to be resolved in the short term."

The majority, almost 90 per cent, of middle-aged people surveyed were worried that their parents would not be able to support themselves in old age and would not get enough income from their pensions.

Work and pensions secretary David Blunkett called this week for a rise in the state pension age to enable people to save more money for their future.

Of the young people surveyed, three-quarters said financial property was the main burden, while over half were concerned about student loans and credit card bills.

Going to university is often a family matter since Local Education Authorities (LEA) ask for full contribution for fees from households with an income of over £32,745 a year. Meanwhile, those with an income of £22,010 or less have their fees paid for them.

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