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Later Parenthood Financially Squeezes Generation

Today’s record high ages of parenthood are a reflection of wider changes in society says Aviva - make sure you are prepared for the financial burdens ahead

Emma Wall 1 December, 2017 | 9:16AM

 

 

Emma Wall: This week the ONS has released its families data showing that we are having fewer children later in life. Aviva has drawn attention to the impact this could have in later life. Parents still face with the burden of the cost of raising children could be trapped in a sandwich generation. As well as having those costs from the lower generation, they also have the potential costs of an ageing parent in a care home. Aviva say that this is the time to really think about the impact of that sandwich cost.

I think it also draws attention to the fact that the younger generation are simply having greater financial burdens. We are having children later; we are taking longer to get on to the housing ladder and this implies that we are not being able to plan to take on financial obligations because of the cost.

As difficult as it is to think about the future, one way to get around this is to save, pay down debt in your 20s and 30s which has a high interest rate and take advantage of tax-efficient savings plans including your workplace pension where your contributions are doubled by your employer and topped up by the taxman.

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About Author Emma Wall

Emma Wall  is Senior Editor for Morningstar.co.uk