Newspaper article The Journal (Newcastle, England)

'Kippers' Cost Parents Pounds 20bn

Newspaper article The Journal (Newcastle, England)

'Kippers' Cost Parents Pounds 20bn

Article excerpt

Almost a million adults in the North-East still live at home with their parents - causing a huge drain on retirement plans, a survey has revealed.

The research by Prudential found that 60pc of over 18s still living at home have jobs but continue to live rent free with their parents.

The cost of getting a foot on the property ladder and unpaid debts such as student loans and credit cards are the main reasons given for so-called `kippers' (Kids in Parents' Pockets Eroding Retirement Savings) choosing to stay at home - in many cases until they are well into their 30s.

But it is a trend that is costing parents pounds 20bn a year, putting a strain on pensions and resources.

Angus MacIver, director of research at Prudential, said: "The findings may come as a rude shock to parents who expect their kids to be out the door when they turn 18 - these days parents may be stuck with them for much longer.

"While this may not be a problem in itself, the real worry is how much these kids cost - and the extent to which they eat into parents' retirement savings.

"Whether our kids leave home at 18, 20 or 30 years of age, families need to plan ahead for every eventuality. Not only do they need to plan to help their children, they also need to balance that with the need to plan their own retirement.

"Kicking-off a savings scheme or pension as early as possible for their kids is an excellent start."

In the North-East, the average age of a first-time buyer has jumped in recent years to 34, compared to 32 in 1988.

But it isn't just about cash or the comforts of a full fridge. Earning a healthy living as an in-demand actress didn't stop Helena Bonham-Carter living with her parents in north London until she was 30, when she moved to a flat of her own nearby. Christian Jenna, regional spokeswoman of the National Family and Parenting Institute, says it's not just about finances, although they are probably the main factor.

"The cost of property has rocketed. People simply can't afford it. A lot of people just don't have the option of buying.

"But it's also the case that people are marrying later. …

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