Will you be a parensioner?

POSTED: 15th May 2013
IN: Guides

Modern life has impacted upon our lifestyles in a great many ways. With the increasing pressure of maintaining a career and finding the perfect house, more people are choosing to have children later in life. Indeed, this phenomenon is now so common that insurance specialist LV= has come up with a new term for these pensioners and parents - Parensioners.

Leaving the sociology aside for a moment, the new trend could have a serious financial impact on those choosing to embark on the walk of parenthood later in life. The current average retirement savings of the average parensioner would leave them £2,000 short per year compared with the average cost of raising a child.

The monetary black hole is only getting wider, and while the well-off will be able to ensure their offspring grow up in the lap of luxury, the ordinary people of Britain have a very real monetary black hole opening before them.

On average, citizens have enough savings to ensure them a retirement income of £8,407 per year, a sum that pales into insignificance when compared to the whopping £10,593,23 annual cost of raising a child.

This figure is, of course, only relevant if the person in question has any private savings. Worryingly, 27 per cent of parensioners indicated they have nothing put by, meaning they'll be even harder pressed when it comes to making ends meet.

The impending financial struggle has prompted many respondents to the survey to start thinking about their future, with 47 per cent speculating they need to increase their savings by almost £500 a month.

This is the amount required to ensure a comfortable lifestyle while supporting a child through life, including the fully fledged horror of university, alone expected to cost £53,330.

It's a mark of how sad the story could potentially be that 73 per cent of parensioners regularly worry about their money woes, while 47 per cent are so concerned about the dual pressures of parenting and retiring that they wish they'd started a family earlier.

Ray Chinn, LV= Head of Pensions, said: "For anyone that is considering bringing little ones into their lives, whatever their age, we would urge them to think about their future savings and retirement plans, seek specialist advice and consider all of the options that will help them sustain their lifestyle."

Sound advice for anyone considering having their family a little further down the line.

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