Children keep parents in the black

GROWING numbers of parents are relying on their children for help to stay afloat financially as the savings crisis deepens, research has revealed.

One in seven parents over 55 - 1.3m people - has accepted assistance from their offspring. Many have suffered shortfalls by failing to put enough aside for their retirement.

The money is going towards day-to-day expenses - including meals, utility bills and council tax - as well as luxuries, like holidays.

The trend marks a reversal in the traditional relationships within families. In the past, it is the children who have relied on their parents for advice and assistance.

The younger generation turned to mothers and fathers for help with their education, credit card bills and buying their first home.

Some parents may have dipped into funds which would have gone towards making their own old age comfortable. Now, their children are returning the financial favour, according to the survey by the Norwich Union insurance group.

Mark Kelly, the insurer's personal finance director, said: 'It's clear that family roles are changing and that shared responsibility is becoming more common. While many parents help their children financially, it is becoming more common for children to help their parents.'

The survey of 600 people found that almost a fifth of the under-35s provided some form of financial-help to their parents. Almost one in six children has given some cash to parents while more than one in ten helped pay the bills.

A third did the shopping for their parents and one in five regularly advised their parents on financial matters.

A fifth of the over-55s questioned said their shopping was done by their children. A similar number were taken on holiday by their offspring.

More than 5% have been given some money while 3% have had their bills paid. Nearly half had meals provided for them.

Kelly added: 'Traditionally, children rely on their parents well into adulthood for financial advice and support.

'However, it appears that these roles have been reversed. With many older people facing a tougher retirement due to issues with pensions and increased living costs, it is perhaps not surprising that they are turning to their children.'

Experts warn that even more parents are likely to be asking for help after being hit by Britain's pensions shortfall.

The crisis has been blamed on longer life expectancy, falling shares, taxes and the falling value of the State pension.

There is a multi-billion-pound shortfall between what Britons are saving and what they should be putting aside.

Meanwhile, many firms are closing final salary pensions and switching employees to riskier equity-based schemes.

Critics said a £5bn-a-year tax on private pensions imposed by Chancellor Gordon Brown has worsened matters.

An official report last week revealed 12m people were risking hardship in old age by not saving enough.