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Grauniad: Parents Pay £34Bn To Support Adult Children

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Decent piece in the Guardian:

Grauniad

More than 13 million parents paid out £34bn in loans and gifts in the past year to help support their financially embarrassed offspring, at an average £2,480 a year, according to research for Sainsbury's Finance.

Many of these "adult-dependants" are still financially dependent on their parents well into their forties, a Peter Pan-like generation who will not or cannot become financially self-sufficient.

..

Helen Williams, head of Sainsbury's Life Insurance, says: "Rising university and living costs, a tough job market and a difficult climate for first-time buyers mean children are staying, to some extent, financially dependent on their parents often well into adulthood."

Sainsbury's Finance, unsurprisingly, says the research indicates a wider need for life insurance among older people who, were they to die unexpectedly, might leave their adult dependents in need. But it is the government who might wish to think over the implications of a generation that needs their parents' help well into adult life.

Sadly, sponging off mummy and daddy late into life has become common. From people expecting the 'Bank of Mum and Dad' to fund mortgage deposits right down to 'kidults' living at home but using the cash saved to live a flash lifestyle (nights out, designer clothes, flash cars, expensive holidays).

Somehow I doubt that these useless, feckless brats will show the same concern for the parents welfare as they enter the later stages of old age and no longer are a source of free cash.

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Decent piece in the Guardian:

Grauniad

Sadly, sponging off mummy and daddy late into life has become common. From people expecting the 'Bank of Mum and Dad' to fund mortgage deposits right down to 'kidults' living at home but using the cash saved to live a flash lifestyle (nights out, designer clothes, flash cars, expensive holidays).

Somehow I doubt that these useless, feckless brats will show the same concern for the parents welfare as they enter the later stages of old age and no longer are a source of free cash.

If there are vast swathes of people doing the same thing, you are better off looking for systemic causes than looking at personality issues, really.

Next you'll be telling us that most people can't buy a house easily without getting into enormous amounts of debt "because they don't work hard enough" or something.

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Somehow I doubt that these useless, feckless brats will show the same concern for the parents welfare as they enter the later stages of old age and no longer are a source of free cash.

This comment is somewhat at odds with the usual HPC line of "The older generation of baby-boomers are ripping off the 18-25 generation who have no job, no house, sky high rents and no hope"...?

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Decent piece in the Guardian:

Grauniad

Sadly, sponging off mummy and daddy late into life has become common. From people expecting the 'Bank of Mum and Dad' to fund mortgage deposits right down to 'kidults' living at home but using the cash saved to live a flash lifestyle (nights out, designer clothes, flash cars, expensive holidays).

Somehow I doubt that these useless, feckless brats will show the same concern for the parents welfare as they enter the later stages of old age and no longer are a source of free cash.

It cuts both ways. Perhaps the former generation shouldn't have created a world where the boomers retire at 65 for 30 years, incurring huge costs to the next generation, after pushing up house prices as part of a generational ponzi scheme, meaning that youngsters on a modest income can't start their lives.

In this zero sum game (because we are just rearranging deck chairs on the titanic here, not generating wealth) only those with no long-term stake win, ie the banks. Even then their workers are mostly not big salaried and are still having to pay into the same insane system.

edit: hopefully we can soon get back to working until you are about to die. It would be nice to see some of the public sector workers who have already retired at 60 frogmarched back to work :-)

Everyone has known for years that we are living longer yet retirement didn't go up. That is fraud on a grand scale.

Edited by bmf

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This comment is somewhat at odds with the usual HPC line of "The older generation of baby-boomers are ripping off the 18-25 generation who have no job, no house, sky high rents and no hope"...?

That's an opinion expressed by a section of HPC posters that I certainly don't subscribe to.

House prices aren't ridiculously high because 'the older generation' decided en-masse to rip off the next generation, they are that way mainly because of a combination of an out of control credit boom stoked up in the first years of the century and good old fashioned human greed which has been around since the year dot.

The main 'beneficiaries' were of course those who were already in a better position to buy early on (or already had property) but that's just the way the dice fell, not some sort of plot by generation X.

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That's an opinion expressed by a section of HPC posters that I certainly don't subscribe to.

House prices aren't ridiculously high because 'the older generation' decided en-masse to rip off the next generation, they are that way mainly because of a combination of an out of control credit boom stoked up in the first years of the century and good old fashioned human greed which has been around since the year dot.

The main 'beneficiaries' were of course those who were already in a better position to buy early on (or already had property) but that's just the way the dice fell, not some sort of plot by generation X.

Agreed. I didn't mean to imply a conspiracy. Just like the banking sector issues, it's a combination of greed and stupidity. It's subjective but I'm willing to see people suffer for either of these traits.

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If there are vast swathes of people doing the same thing, you are better off looking for systemic causes than looking at personality issues, really.

Next you'll be telling us that most people can't buy a house easily without getting into enormous amounts of debt "because they don't work hard enough" or something.

From what I can see, the phenomenon of total fecklessness amongst large numbers of young adults is more about their inability to understand that they can't continue to live beyond their means as was common amongst their elders when they were growing up rather than inability to afford a house.

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That's an opinion expressed by a section of HPC posters that I certainly don't subscribe to.

House prices aren't ridiculously high because 'the older generation' decided en-masse to rip off the next generation, they are that way mainly because of a combination of an out of control credit boom stoked up in the first years of the century and good old fashioned human greed which has been around since the year dot.

The main 'beneficiaries' were of course those who were already in a better position to buy early on (or already had property) but that's just the way the dice fell, not some sort of plot by generation X.

Well the younger generation have to pay for the fiat banking empire and enormous welfare state the boomers created, as well as fund their own educations and operate in a world with ever decreasing job security and declining real wages.

It's a bit of a burden, really. Nowk if the boomers had paid for their own education, medical care, wars, banking system etc etc instead of sticking it on their kids credit card you might have a point...............but they didn't. Taxpayer borrowing funded freebies all the way, don't ask where the cash came from and blame the victim when it goes wrong. Classic boomerism.

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From what I can see, the phenomenon of total fecklessness amongst large numbers of young adults is more about their inability to understand that they can't continue to live beyond their means as was common amongst their elders when they were growing up rather than inability to afford a house.

I'm sorry, but the elders are the ones who lived beyond their means.

And now the young are being asked to pay for it.

Because, you see, the boomers paid for basically nothing they used throughout their lives. It all got borrowed at interest on their behalf by politicians who they believed without checking up on too closely. All that "free" education etc? Stuck on the credit card of their unborn kids.

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We must be the unluckiest couple in the world, the parents and I mean all of them his and mine haven't really a pot to piss in.

My mother has moved in her new boyfriend who's £70k in debt and hasn't even got a car to show for it, so we can see where her house is heading, his mother owns a tiny little flat that we'll be grateful if somebody takes off our hands to stop us incurring the stupid maintenance fees. Both our fathers have plowed everything into their pensions, have been divorced that many times that the houses are long gone. when they die I presume the pensions go with them.

I lend my parents money on a regular basis :(

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I'm sorry, but the elders are the ones who lived beyond their means.

And now the young are being asked to pay for it.

Because, you see, the boomers paid for basically nothing they used throughout their lives. It all got borrowed at interest on their behalf by politicians who they believed without checking up on too closely. All that "free" education etc? Stuck on the credit card of their unborn kids.

We had a decade of more of 'easy money' and people in general (young or old) can't bring themselves to understand that it's over, for good.

I doubt their kids understand how money/the financial system works any better than their elders. If there was to be any sort of sudden general understanding amongst the wider public of how they are fleeced by the system, we'd have riots that make the recent chav uprising look like a children's parade.

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We had a decade of more of 'easy money' and people in general (young or old) can't bring themselves to understand that it's over, for good.

Not a decade, 40 years.

I doubt their kids understand how money/the financial system works any better than their elders. If there was to be any sort of sudden general understanding amongst the wider public of how they are fleeced by the system, we'd have riots that make the recent chav uprising look like a children's parade.

Yes, of course.

The boomers were thick and taught their children equally as badly.

Main sin from the boomers? Taking the cash, asking no questions. I' not saying the current generation would have behaved any better in their shoes, mind you. But blame where it belongs, please.

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I think there is an attitude of entitlement in the current generation that has been indoctrinated into them from an early age.

Funnily enough the boomers that I know started out living in damp, cramped homes as that is all they could afford. They gradually worked their way up the housing ladder. Seems a lot of the current generation seem to want to skip this struggle and buy a 3 bed detached in a nice area as their first home and expect their parents to put up with them in the meantime.

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Not a decade, 40 years.

Absolutely.

The entire system is broken. It can't be fixed. When people recognise this the whole lot will come crashing down.

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Not a decade, 40 years.

Yes, of course.

The boomers were thick and taught their children equally as badly.

Main sin from the boomers? Taking the cash, asking no questions. I' not saying the current generation would have behaved any better in their shoes, mind you. But blame where it belongs, please.

Taking the cash? You're taking the p1ss. When I first bought, there was a cap on the amount of mortgage offered by my BS. Not related to salary or deposit, a flat maximum. In today's terms a 75% LTV couldn't buy a provincial modest semi, even though we only needed to borrow 2.5x combined income, which was pushing it with interest rates at 11% and rising (eventually to reach 15%). Luckily the EA came to our rescue and found us another small BS willing to lend. Why did BS1 have a cap?

Because a previous, relatively small boom had diminished the BS reserves. No more money. Sorry mate. "But we have all our savings with you!" "Sorry mate".

That's exactly the opposite of what happened in the last few decades. From somewhere, a limitless expansion of credit enabled THE GENERATIONS AFTER MINE to bid up prices crazily, connived at with unscruplous agents flogging LIAR LOANS. I had thought that the money was the income stream generated by the fortuitous find of North Sea oil, but it appears it was Injin tokens, magicked into being by those "whose talents we must retain" and disguised by the obscure and dubious mathematics of Quants.

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We must be the unluckiest couple in the world, the parents and I mean all of them his and mine haven't really a pot to piss in.

My mother has moved in her new boyfriend who's £70k in debt and hasn't even got a car to show for it, so we can see where her house is heading, his mother owns a tiny little flat that we'll be grateful if somebody takes off our hands to stop us incurring the stupid maintenance fees. Both our fathers have plowed everything into their pensions, have been divorced that many times that the houses are long gone. when they die I presume the pensions go with them.

I lend my parents money on a regular basis :(

This is the flip side of the coin . There are people about few and far between who earn enough to stand on their own two feet and the financial standing of their parents is irrelevant . There are people about who rely on their parent's and who will rely on them to set them up when they die and then there are those about who have parents with nothing . If these people do not stand on their own feet they are going to be fked and will never be financialy secure.

Most average people will not buy their own house in the future ( crash or not ) without family money to set them up . The figures do not add up and there will be those who do have family money keeping the houses beyound the average who have no help.

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I think there is an attitude of entitlement in the current generation that has been indoctrinated into them from an early age.

Funnily enough the boomers that I know started out living in damp, cramped homes as that is all they could afford. They gradually worked their way up the housing ladder. Seems a lot of the current generation seem to want to skip this struggle and buy a 3 bed detached in a nice area as their first home and expect their parents to put up with them in the meantime.

Except in a stagnant housing market the "housing ladder" that this generation love doesn't work (you didn't need to understand it to benefit from it). So people who buy a dump now will stay in it for a very long time.

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This is the flip side of the coin . There are people about few and far between who earn enough to stand on their own two feet and the financial standing of their parents is irrelevant . There are people about who rely on their parent's and who will rely on them to set them up when they die and then there are those about who have parents with nothing . If these people do not stand on their own feet they are going to be fked and will never be financialy secure.

Most average people will not buy their own house in the future ( crash or not ) without family money to set them up . The figures do not add up and there will be those who do have family money keeping the houses beyound the average who have no help.

Yep - which entrenches issues with social mobility.

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I think there is an attitude of entitlement in the current generation that has been indoctrinated into them from an early age.

Funnily enough the boomers that I know started out living in damp, cramped homes as that is all they could afford. They gradually worked their way up the housing ladder. Seems a lot of the current generation seem to want to skip this struggle and buy a 3 bed detached in a nice area as their first home and expect their parents to put up with them in the meantime.

You hit the nail on the head there when you said

" HOUSING LADDER "

The housing ladder was there due to constant rising inflation with wage rises to match. Houses went up slightly more than infalation and wage inflation. Now they have outstripped inflation and wage inflation which has destroyed the ladder. This is not the fault of the current generation . When I ever talk to people from this generation I do not get the impression that they want it all handed to them on a plate and expect a 3 bed detatched in a nice area as their first home . I get the impression that they realise that they cannot afford a one bed in the cheapest part of town.

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From what I can see, the phenomenon of total fecklessness amongst large numbers of young adults is more about their inability to understand that they can't continue to live beyond their means as was common amongst their elders when they were growing up rather than inability to afford a house.

I can't afford to live within my means because I cannot access the fruits of my labour.

There needs to be a remix of the DIRE STRAITS.

B bowm, b ber, ber ber ber....

Working for nothing, baked beans for tea!

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We must be the unluckiest couple in the world, the parents and I mean all of them his and mine haven't really a pot to piss in.

My mother has moved in her new boyfriend who's £70k in debt and hasn't even got a car to show for it, so we can see where her house is heading, his mother owns a tiny little flat that we'll be grateful if somebody takes off our hands to stop us incurring the stupid maintenance fees. Both our fathers have plowed everything into their pensions, have been divorced that many times that the houses are long gone. when they die I presume the pensions go with them.

I lend my parents money on a regular basis :(

They're family. It's just what you do and good that you do it.

Wait until one has to go into a care home. Seeing as you actually care, the costs are exhorbitant for the nice places you would want them to stay in. The free ones were blooming depressing IMPO.

Then kiss goodbye to any form of inheritance that the older generations seemed to be gifted with. Times have definately changed, unless you are heartless and sell the parents up the river.

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Both our fathers have plowed everything into their pensions, have been divorced that many times that the houses are long gone. when they die I presume the pensions go with them.

I lend my parents money on a regular basis

My Nan and my wife came from similiar families. They both a long time ago decided that they weren't responsible for their father's sins. You earn the right to be looked after by your children it is not a given.

Don't feel guilty they have made their choices now make yours.

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I'm sorry, but the elders are the ones who lived beyond their means.

All that "free" education etc? Stuck on the credit card of their unborn kids.

Not sure I buy that - you would have to look at the deficits in the years that they were at University (and only small percentage of them went to University in any case so the contribution to the deficits were probably small).

I think you'd have to find bits of government funding that were accessible to a wider part of the population for that.

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just so I'm clear, are these kidults and spongeing, feckless losers living with their parents

Yeah that's right, not like anyone still stuck at home works two jobs, has a mortgage agreed but held fire on buying DUE TO WHAT IS WRITTEN ON THIS VERY SITE.

*****.

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  • 336 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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