"The findings highlight how closely linked today's financial pressures and tomorrow's planning decisions have become."
- Andy Philo - Vitality
Around one in seven (14%) parents are financially stretched between supporting both children and ageing parents, new research from Vitality has revealed. This has created a 'sandwich generation' in UK households, leading to challenges for both day-to-day finances and longer-term planning.
However, 57% of parents say taking out income protection was not something they considered when they had children, suggesting many households could be underestimating the financial impact a period of ill health may have on family finances.
Similarly, while 53% say they would be more likely to choose an insurance product that includes later life care, previous Vitality research shows only 6% currently plan to use a protection policy to fund this, indicating low awareness of available solutions.
Among the families facing financial strain, a third of those with children under 18 say helping their own parents is a significant financial challenge, while 51% struggle with the cost of supporting their children.
In addition, 26% of parents with children under 18 say they would lack confidence in securing the additional reliable childcare support that they may need if illness or injury prevented them from working and they were left unable to care for their child.
The research also suggests many people are keen to avoid passing similar pressures on to their own families. 62% say they would be uncomfortable relying on relatives for financial or care support in later life. However, almost one in five are unsure how they would cover later-life care costs and a further 23% admitted they have not considered the issue at all.
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"Many people are focused on meeting the multiple demands of supporting their families today, which can leave little time or capacity to plan for future financial risks," Andy Philo, director of strategic partnerships at Vitality, said.
"The findings highlight how closely linked today's financial pressures and tomorrow's planning decisions have become. While many people are focused on supporting children or ageing parents, fewer have considered how they would cope financially if illness affected their ability to work, or how they might fund their own care needs later in life.
"This creates an important opportunity for advisers to have broader conversations around financial resilience and long-term protection planning."
