It's pay-back time for grown-up kids

April, 25, 2008

Twenty-somethings who have relied on their parents for a financial hand as they establish themselves in the work place, may be discovering it's pay-back time.

Scottish Widows has released a report today suggesting a number of people are experiencing so-called "sap back", whereby their parents are now leaning on them for cash.

Possibly having failed to appreciate the importance of saving for retirement, large numbers of parents are requiring funds from their children - to the tune of £11 billion.

Anne Young, savings expert at Scottish Widows, explains: "The amount of money given or loaned by parents and the number of children sapping savings have both increased in the last year."

"The glaring hole in parents' finances will need to be replaced somehow, whether by sapping funds back from their children or by other means," she added.

Earlier this month, Prudential identified a growing trend for parents to go one step further by moving in with their children as a means of saving money.

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