Parents are bailed out financially by their children later in life, a new report claims to show.
Many British adults will be forced either to give up work or to pass up on their inheritances in order to meet care home fees for their elderly parents, Saga has claimed.
This is a reverse on what occurs earlier in life, when parents generally lend money to cash-strapped offspring. Therefore, "The Bank of Mum and Dad' may become "The Bank of Sons and Daughters," as the years pass, according to the new report.
Evidence for this point of view is provided by the fact that, according to recent research from the firm, 47 percent of adults underestimate the cost of long-term care. Moreover, 56 percent of people whose mother and father are already in their 60s have never talked with them about how they will be financially looked after in later years.
With the cost of long-term care running at between £25,000 and £30,000 a year on average, this could prove a big financial problem for many. Indeed, when informed by Saga of the true costs, 36 percent of poll respondents said that they expect to be forced into financial sacrifices themselves in order to fund them.
Owain Wright, head of care funding services at Saga, said: "The cost of care is not always something people think to talk to their parents about, but it is vital to start planning as early as possible. As this research reveals, there are a huge number of people who are relying on an inheritance from their parents, though underestimate the cost of long-term care.
"By not discussing the issue and making provisions, they are neglecting the fact that their parents may be facing a situation where they will be forced to turn to their children for financial help. With careful planning this can be avoided."
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