69pc of people feel emotional impact of family lending
The research found that a third (30%) of people aged from 18 to 54 turn to their parents for help when they need a little extra cash.
When broken down this equates to over half (51%) of those aged up to 24, over a third (34%) of those aged 24 to 34 and almost three in ten (29%) of those aged 35 to 44.
Nigel Waterson, chairman of the Equity Release Council, said: “Many people are currently trying to come to terms with higher travel costs and energy bills for the coming year, so there is already a lot of pressure on families.
“Intergenerational lending, particularly the ‘Bank of Mum and Dad’, seems to be becoming the preferred method of borrowing, but as the findings of our research show it can come at an emotional cost.”
Common issues experienced were said to be frustration at the varying levels of help enjoyed by different siblings (11%) and annoyance at the continuing need for parental support (11%).
In addition, one in ten (10%) families keep secrets from each other in order to conceal the amount of help given, while a further 10% worry that their parents will need the money in later life.
Nine per cent feel embarrassed at having to turn to their parents for help in the first place.
Parental concerns were also expressed by nearly half (43%) of people surveyed who said they worry about whether they will be able to help their own children financially in adulthood.
This figure rises to 56% among 24 to 34 year olds and 60% among 18 to 24 year olds.
Over a third (26%) of all ages are concerned about whether their children will ever be able to survive financially on their own in the future, with the greatest concern among those aged 35 to 44 (42%).
Waterson added: “It is understandable that parents want to help their children, but this can create a real dilemma for those who don’t have the resources.
“Yet, in the majority of cases, there is substantial wealth tied up in the family home and through the use of equity release, this can be unlocked and used to tackle financial pressures across the generations.”