LV= warns that growing numbers of Brits are supporting others financially without safety net in place
Britons are feeling the strain of supporting others financially, LV= is warning, as research from the provider shows more people are supporting family members with their salary and for longer.
The provider’s Dependency Index reveals that 45% of Brits have others financially dependent on their income for basic everyday living costs such as food and housing.
The research shows that 29% of those with financial dependents never expect to become dependent-free. Of those that do, people expect to have to wait until an average age of 51 before they are free of dependents.
Mark Jones, head of protection at LV=, said that young people are relying on their parents’ incomes later into life as they struggle to find employment or get onto the housing ladder, while many parents also have elderly family members to support.
He said: “People are feeling financially squeezed and pulled in many directions. Salaries are not rising in line with inflation, and with living costs on the rise as well as continued unemployment problems people are feeling the pressure of having others relying on their income, be that younger, or older family members.”
The research shows that 14% of peopled aged over 55 are still supporting a child financially with everyday basic living costs, while one in five of those with dependents say they feel their salary is being stretched.
Half of couples have no life cover or income protection in place, while only 11% have both.
Jones added: “With the pressure of others relying on one person’s salary it’s important people are prepared if there is a change in their financial circumstances, for instance, what would happen if that person is unexpectedly unable to work due to illness, accident or unemployment?
“We would encourage people to ensure they have a safety net in place so they can continue to support themselves and their family.”