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Parents living with their children
"3G" FAMILIES ON THE RISE AS PARENTS
GO TO LIVE WITH CHILDREN
- 858,000 households have one or both parents living under the same roof
as their grown-up children, research shows
Parents are coming back to live with their children in a reverse of the tradition of "empty nesters" living on their own after the family has gone. Research from retirement housing and finance specialist Economic Lifestyle shows that more than 858,000 adults aged between 35 and 64 now have one or both of their parents living in their home.
And it's a phenomenon the firm has dubbed "3G" families - short for three generations living under the same roof. The financial squeeze faced by the over-65s struggling to maintain a home on low incomes is forcing more to live with their children, Economic Lifestyle believes.
Rising council tax and heating bills on top of home maintenance costs plus the possibility that over-65s are suffering from failing health makes it more convenient for them to live with their families, the firm adds.
Currently four per cent of households with adults aged between 35 and 64 have their parents living with them. Households in the North of England and London are most likely to have parents living with them - some eight per cent and seven per cent respectively.
Families in the West Midlands and the South
West of England are least likely to have elderly parents living with them
- just two per cent and three per cent respectively, the research shows.
The table below shows the spread of 3G families across the country.
|
AREA
|
NUMBER OF HOUSEHOLDS WITH ADULTS AGED 35-64 WHO HAVE PARENTS LIVING WITH THEM |
|
LONDON
|
178,000
|
|
SOUTH EAST/EAST ANGLIA
|
181,000
|
|
SOUTH WEST/WALES
|
121,000
|
|
MIDLANDS
|
107,000
|
|
YORKS/HUMBER |
71,000
|
|
NORTH WEST
|
101,000
|
|
NORTH/SCOTLAND
|
100,000 |
Mark Neal, managing director of Economic Lifestyle, said: "Retired
people struggle by on average incomes of around £11,000 and many are
even still paying off mortgages. Around one in five pensioners live below
the poverty line.
"Financially it makes sense for them to go back to live with their adult children who may be reasonably well-off and able to help them just as they were supported by their parents while they were growing up.
"However it is the case that three generations of a family living under the same roof can lead to tensions. Many families will be happy to have their parents come to live with them but for others it is an arrangement forced on them by financial necessity.
"Those aged 35-44 are most likely to have their parents living with them - in fact, there are more 3G families in this category than all the others combined.
As the age of the homeowner rises the proportion of those living with their parents fall. However the research shows 148,000 adults aged between 55 and 64 have one or both their parents living with them.
Families who find themselves forced by financial necessity to live together can look for alternatives which will be affordable and can ease potential clashes.
Economic Lifestyle offers homeowners aged 65 and over a number of options for releasing some of the equity in their homes or to live in a property that they would not normally be able to afford. These include:
1. Life Interest Plan
The Life Interest Plan, a unique reversion scheme, allows people over the
age of 65 to buy a home designed for retirement living at a fraction of
its true value by selling their existing property then using part of the
equity to buy a Life Interest in an Economic Lifestyle property. The retirement
property then becomes their legal home for the rest of their and their partner's
life allowing them to make the most of their retirement years with the remaining
equity.
2. Find & Afford Plan
The Find and Afford Plan enables people to find a property that they want
and Economic Lifestyle will buy it and lease it to them at a cost that is
greatly below its market price. The property reverts back to the company
on the passing away of the customer/s. It is also possible to opt for a
part find and afford which allows them to release capital but also leave
part of the property value to their estate.
3. Cash Release Plan
Perfect for those aged 65 and over who wish to remain living in their current
home and release capital at the same time. The property is valued by a qualified
surveyor, and after formal acceptance, the tax-free funds are transferred
within 10-12 weeks, including a full refund of the valuation fee. There
are no restrictions on how the money should be spent.
4. Home Exchange Plan
For people taking out the Life Interest Plan or using the Find and Afford
Plan, Economic Lifestyle can arrange a cash sale of their current home.
This enables the retired homeowner to eliminate chains, stress, unwanted
visitors and estate agents fees. Two free independent valuations are arranged
from which the average is taken and an offer is made.
To find out more about Economic Lifestyle's range of services, log on to www.economiclifestyle.co.uk or speak to an adviser on 0800 043 33 66.