Families are banking on their older relatives to fund their luxury lifestyles by borrowing huge amounts of cash, according to a new survey.
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Younger relatives confessed they turn to the over 65s to the tune of more than £1 billion a year to help pay for a lifestyle they can’t afford.
Most of the cash goes on holidays, luxuries and paying day-to-bills.
A third of over 65s admit they bankroll younger family and friends – paying their credit card bills and other debts.
While 8% stump up the cash to put a roof over their heads by handing over large sums for deposits to buy a house.
Shame
And this is despite figures from the Office of National Statistics showing the over 65s have, on average, less than half the income of younger households.
Almost one in 10 over 65s have let younger friends and relatives borrow more than £1,000 in the past year, and more than a quarter (27%) say they would consider a request and probably hand over the cash if asked to do so.
While pensioners are the age group most likely to give money when asked, they are also the age group to keep quiet about their finances and are unlikely to ask the same favour in return.
Nearly two-thirds (60%) said they would never ask younger relatives for cash.
Three-quarters said they would be too ashamed to ask for money, while 16% would rather go to a payday loan company or borrow some other way than let their family know they needed the cash.
The figures were compiled by web site Gocompare.
Matt Sanders, the site’s banking and credit card expert said: “It’s interesting that the age group with the lowest average income are also the age group that lends larger amounts of money than any other.
Financial falling out
“Of course it’s common for family and friends to borrow from each other and most have done so or would listen to requests.”
The research found 63% of people had let relatives and friends borrow from them, but many have fallen out over cash.
“A third of people we asked said they had argued with argued or had issues over money they had lent or borrowed,” said Sanders.
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