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Report exposes hidden costs of 'family loans'
Loans and cash gifts given to children and grandchildren are pushing some households into debt, Scottish Widows has said.
According to the pension provider's new report, these financial demands cost parents £11,776 on average.
In total, the loans and gifts bill comes to £72.5 billion.
Scottish widows said that two in three families with children aged over 16 years old offer the loans, while one in six go further into debt as a consequence.
Moreover, nine in ten dip into their savings in order to meet the financial demands of their offspring.
Gordon Greig, head of savings and investments at Scottish Widows, commented: "The immediate impact of parents providing funding to their adult children can be detrimental on long-term savings and investments.
"Many have had to cut back on saving themselves, reduce their outgoings and even take on additional debt. When times are as tough as they currently are, this is the last extra burden parents need."