A recent report from Friends Life shows parents are helping their adult children by more than GBP 3,000 a year because of rising costs of property prices, tuition fees and youth unemployment.
The report, entitled ‘Working Women’ and part of Friends Life’s Visions of Britain 2020 series, reveals that rather than coasting towards a comfortable retirement, women in their 50s are working for longer than ever in order to give their adult children financial support. On average, parents have given their adult children (those aged over 21) £3,180 in handouts in the past year, with the figure rising to £4,840 for the middle classes (ABC1s).
The findings suggest that far from being unscathed by the credit crunch and recession, this ‘golden generation’ of working women in their 50s finds itself bearing some of the financial burden of the younger generations. Traditionally, most children will have flown the nest by the time they reach 21, but the report reveals that 70% of working women have allowed their adult children to remain at the family home, even if they have a full-time job. More than half (56%) of working mothers expect to help their children get on the property ladder, and 51% are prepared to help their children pay off their student debt.
This unprecedented financial support for adult children comes at a time when the Government has announced plans to speed up the timetable for the increase in the basic state pension age for women to 66. The report shows that 65% of working women aged 52-58 (the age group affected by the changes) are resigned to carrying on working until they become eligible. Only one in seven (14%) says they will retire at the age they originally intended.
But the report reveals that concerns about the financial security of their children is another factor forcing women to work longer, with 28% saying that they are considering delaying retirement in order to support their family. And 68% expect to have to work beyond 66 in order to fund their own retirement.
Jo Cann, Marketing Director, Investments and Pensions at Friends Life said:
“With property prices still way above their long-term average, tuition fees set to increase and youth unemployment high, the pressure on older working women to support their adult children will not abate. Coupled with the increase in the state pension age, early financial planning to take account of this additional strain on women’s finances is essential if they are to enjoy the retirement they deserve.”
The report is a comprehensive study of the financial challenges facing working women today. Other findings include:
– Among those who are saving for a pension, working women are much more likely to start saving later in their lives than working men. Only 7% of working men who are saving for a pension started to do so after the age of 35; this is true of more than twice as many working women (18%).
– There is a widespread fear among older working women that their age would place them at a severe disadvantage if they lost their job. Some 88% of working women over 50 agree that their age would make it difficult for them to find a new job if they were made redundant.
– A clear majority of older working women would like to ease into semi-retirement, keeping themselves busy rather than stopping work completely. Two-thirds of working women over 50 say they would like to continue working on a part-time or ad hoc basis after they retire.
The Working Women report has been compiled on behalf of Friends Life by The Future Foundation.
Source : Friends Life
