Research from Norwich Union, part of Aviva, shows that middle children are the most financially self-sufficient compared to older and younger brothers and sisters.
- Only children are least likely to pay back loans from mum and dad
Research from Norwich Union, part of Aviva, shows that middle children are the most financially self-sufficient compared to older and younger brothers and sisters. Only children are the worst when it comes paying back loans from mum and dad. And lending money to children is a good way to provoke an outbreak of sibling rivalry!
These are the findings of research released today by Norwich Union, the leading provider of equity release. The research was commissioned to understand the relationships between parents, their children and money. It surveyed 1,974 adults and found:
- Nearly four out of 10 (39%) middle children pay back financial "bail outs" from parents. Only one in 10 (11%) only-children do the same - and nearly three quarters (73%) regard the money as a gift.
- Some children would be unhappy if their parents gave money to their siblings. When asked how their brothers and sisters would feel if their parents gave them money, one in ten said they would be annoyed or think it unfair or would feel that they are missing out!.
- But only 4% admitted to having a family fall-out over finances, showing that many siblings choose to keep quiet about their feelings on family handouts, and instead are left silently seething if their parents give siblings financial handouts.
- Middle children typically expect to receive financial help from their parents until only the age of 21 compared with 22 years for the eldest and 23 years for the youngest children. Only-children think it acceptable to receive help from parents until the age of 25,
- Only 39% of middle children have had or expect financial assistance from their parents. This figure rises to 52% for the youngest and 48% for eldest children. More than half (55%) of only children expect to receive or have already received financial help from their parents.
Dominic Fraser-Smith, equity release group product manager
of Norwich Union, said: "Middle children appear the most financially self-sufficient, both through the amount of money they receive from their parents and the fact that they are a lot more likely to repay any money borrowed.
"Family finances are a sore subject for some as the research points to the fact that these family handouts could actually create a silent sibling feud fuelled by feelings of being left out and treated unfairly when siblings are given a financial bail out by their parents.
"Due to the soaring cost of living, many people continue to turn to their parents much later in life to help with their financial strains from university through to buying a home and starting a family. Yet, although this is currently affecting the younger generation, it will also be affecting retirees. About one in five people who take out equity release do so to help their children, either to provide an early inheritance or to help them out financially."
-ends-
About the research:
The research was carried out via YouGov amongst 1,974 consumers between 8 and 10 July 2008.
Press office contacts:
Norwich Union
David Gwyer
Telephone: 0207 662 0550 / 07800 693187
E-mail: DAVID.GWYER@Norwich-Union.co.uk
The Wriglesworth Consultancy
Suman Katyal / Karen Butcher/ Zara Hosford
Telephone: 0207 427 1400
E-mail: s.katyal@wriglesworth.com
Notes to editors:
Table 1: Expectations of financial help by sibling status:
| Status | Percentage that expect to receive / have received financial help from parents | Maximum age at which people expect to receive financial help from parents | Percentage who have repaid their parents for a financial ‘bail out' |
| Only child | 55% | 25 years | 11% |
| Youngest child | 52% | 23 years | 30% |
| Middle child | 39% | 21 years | 39% |
| Eldest child | 48% | 22 years | 32% |
About equity release
Norwich Union is the leading provider of equity release plans in the UK. Source SHIP
Equity release is a way of unlocking some of the capital in your home and turning it into cash - without having to move. Norwich Union offers two types of equity release plan. These are known generically as:
- Lifetime mortgage: A loan secured against your home, with no regular repayments to make as the loan and interest are rolled up and usually repaid when you die or if you need to move into long-term care.
Lifetime mortgage including a drawdown option: A lifetime mortgage that enables customers to unlock some of the value in their home by releasing an initial amount of money and keeping a reserve fund available that can be released in future when required.
The interest charged is calculated on the total of the amount borrowed and the interest already added, which quickly increases the amount you owe
- Home reversion plan: Enables you to sell all or a percentage of your home in return for a cash lump sum. Because the money is provided upfront and you continue to benefit from living in your home you will get less than the full market valuation of the property.
Taking a lump sum plus costs will reduce the value you have in your home and therefore any inheritance you leave. Your tax and welfare benefits may also be affected.
This is a lifetime mortgage or home reversion plan. To understand the features and risks, ask for a personalised illustration."
SHIP membership
Norwich Union is a found member of SHIP (Safe Home Income Plans), a group that was launched in 1991 and is dedicated entirely to the protection of planholders and promotion of safe home income and equity release plans. All participating companies are pledged to observe the SHIP Code of Practice.
Norwich Union is the UK's largest insurer. It is a leading provider of life, pensions and investment products and one of the largest financial adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
Norwich Union is the UK's largest general insurer with a market share of around 14%, with a focus on insurance for individuals and small businesses.
Norwich Union's news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media