Adult children returning to the nest

28 March 2006
An increasing number of people who left home in their 20s are returning to live with their parents in their 30s, a new report claims.

Mortgages and debts are leading families to see the benefits of pooling resources, in a manner that Friends Provident call "ant colonies" in their Lasting Lifestyles report.

As many as 3.5 million people have returned to their old home to create "anthill families" to save money. According to the Lasting Lifestyles report: "As 30-somethings fail to invest in pensions and an ageing population spends its children's inheritance, we are seeing families moving back in with each other and sharing the cost of home and mortgage."

Personal debt in the UK is spiralling and is now well over the £1 trillion mark, plus many pension schemes are being wound down, all adding to the need for some families to pool resources to cope with these changes.

Jeremy Ward, head of pensions and marketing at Friends Provident, said that in addition to families working to clear one mortgage together, he saw it as "natural progression" for families to one day pay into only one pension fund.

This is currently not possible, though Mr Ward urges that this situation be rectified.

Reasons cited for people returning to the family home include larger numbers than ever going to university and taking work experience which increased debts.

In addition to "anthill families", the report said that other ways individuals were preparing against financial burden included more people than ever starting up businesses to top up their pensions.

Praising the new ways to beat debt, Mr Ward said: "The most forward-thinking parents have realised that by pooling their money, the family unit is pulling together to build a secure future for each member - this is teamwork at its best and a new social and financial trend."

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