Baby gloomers: aging population puts strain on working families

Six in ten (62%) over 50s worry that their pensions and savings are unlikely to see them through retirement , according to the latest Aviva Cost of Family Care study.

As the Department of Health prepares to publish its green paper on long-term social care funding this month, the research suggest that Britain’s ageing population is facing a potentially difficult financial future.

The report from Aviva shows that the effect of people living longer is the creation of a generation of ‘baby gloomers’ – those facing the prospect of simultaneously financing both their elderly parents and their own children.

According to the report, 71% of adults in the UK fear their parents’ shortage in retirement funding could cause severe problems for their own financial futures, while 60% are concerned that their parents will not be able to afford to stay in their existing homes in retirement .

Most worrying, 67% of respondents reported that while they would like to support their elderly parents financially during retirement, their own financial situation makes that impossible.

Paul Goodwin, head of pension propositions for UK Life, Aviva comments:

“Future finances are one of the most crucial areas families need to discuss and a key area where people should seek independent financial advice. Almost half (45%) of adults told us they have no idea how their parents plan to fund their retirement, but six in ten (62%) admitted they feel uncomfortable asking their parents questions about their finances.”

“According to our research the majority (93%) of ‘baby gloomers’ would welcome a more consistent system for care of the elderly. The Green Paper is therefore a great opportunity to improve care, making it clearer for families what they are entitled to and where they should turn for advice and support.”