Three generations in one house as financial pressures mount

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by Kay Murchie

Research from Prudential has revealed that 82,600 UK households are found to have three generations living under the same roof as financial pressures mount.

Many are forced to support their elderly parents as the research shows that 4.6 million adults have taken in their own elderly parents or relatives.

Furthermore, 8.3 million still have their grown-up children (aged 18 or over) living under their roof.

Prudential predicts that this is set to grow in the coming years as the squeeze on retirement income means more pensioners find living with their children and grandchildren is the only thing they can afford to do.

Gary Shaughnessy, managing director of Prudential Retail, said the phenomenon of the three generation family does not come without a cost.

For the middle generation the financial drain of providing support for both the younger and older generations could have a detrimental impact on their ability to save adequately for their own retirement. In turn, they too may eventually become financially reliant on their children in old age, added Mr Shaughnessy.

Approximately 11% of UK adults say they provide their grown-up children with money to help them make ends meet. 3% support elderly relatives and a further 1% help both adult children and pensioner relatives. The average payout for this support equates to £126.17 a month.