Debt News

"Bank of Sons and Daughters" to pay for parents` care

14 August 2008

Saga has released a new report indicating people may find themselves with debt problems following unexpected care costs for their parents.

"The Bank of Sons and Daughters" may replace the bank of mum and dad as older people are not preparing sufficiently for care.

According to the study, carried out by Opinium Research, ten per cent of adults have "seriously discussed" funding for long-term care with their parents. Some 56 per cent with parents in their 60s have discussed care costs.

Furthermore, 47 per cent have underestimated how much care would cost, leading to fears of inheritance money being used.

Owain Wright, head of care funding services, urged people to talk about the matter.

"By not discussing the issue and making provisions, they are neglecting the fact that their parents may be facing a situation where they will be forced to turn to their children for financial help."

Citing research undertaken by Laing & Buisson, the group suggested the situation is set to get worse with care home fees predicted to double over the next two decades.

Earlier this month, Saga said 35 per cent of those over 50 are cutting back to pay for increased energy bills.