As the Department of Health prepares to publish its
green paper on long-term social care funding this month, research reveals a
potentially difficult financial future for Britain’s ageing population.
The Aviva Cost of Family Care study says six in 10 (62%)* over 50s worry that
their pensions and savings are unlikely to see them through retirement.
The knock-on effect is creating a new generation of "baby gloomers"
– those facing the prospect of simultaneously financing both their elderly
parents and their own children:
* Almost three quarters (71%) of adults in the UK fear their parents’
shortage in retirement funding could cause severe problems for their own financial
futures
* Six in 10 (60%) are concerned their parents will not be able to afford to
stay in their existing homes in retirement – a quarter (25%) plan for
their parents to live with them
* One in 10 (11%) say they are ready to cash in their savings and investments
to fund their parents’ retirement
* Almost 10% are worried that their parents might not be able to pay for any
required medical care during retirement.
Many would like to support their elderly parents financially during retirement
but, for two thirds (67%) say their own financial situation makes that impossible.
In fact almost half (43%) are delaying financial plans for their own retirement
because of the current economic climate.
Paul Goodwin, head of pension propositions for UK Life, Aviva comments: “Future
finances are one of the most crucial areas families need to discuss and a key
area where people should seek independent financial advice. Almost half (45%)
of adults told us they have no idea how their parents plan to fund their retirement,
but six in ten (62%) admitted they feel uncomfortable asking their parents questions
about their finances.
“According to our research the majority (93%)** of ‘baby gloomers’
would welcome a more consistent system for care of the elderly. The Green Paper
is therefore a great opportunity to improve care, making it clearer for families
what they are entitled to and where they should turn for advice and support."
The 2009 "Cost of Family Care" study by Aviva also found:
* 41% worry they will have to work longer than they planned to support elderly
parents
* 25% worry that they will not be able to support their own children through
university
* 37% worry that they will have to live without luxuries in order to provide
additional financial support for elderly parents
* 13% worry they will have to cut back on their working hours to look after
their parents.
Home
