Economy sees lodging running in the family

Research from Aviva shows that 73 per cent of over-18s have lived with extended family into adulthood, with the vast majority citing saving money as the reason.

Family lodgers reckon that they save an average of £225 per month by living with relatives.

This rises to £311 for young childless couples, with a substantial 46 per cent admitting they don’t pay any rent.

However, host families estimate they spend an extra £107 per month housing their loved ones.

Aviva said it carried out the research to highlight the importance of family protection at different life stages.

As more adult children and elderly relatives depend on families to put a roof over their heads, so it becomes even more important that ‘host’ families protect their incomes, said the insurer.

Louise Colley, the York-based head of protection sales and marketing for Aviva, said: “Generally we think of children becoming independent when they reach 18, but it’s clear many are relying on their families both financially and practically into their 20s and 30s and beyond.

“There’s also evidence of older family members living with relatives for companionship and care, so dependencies can occur at almost any point in families’ lives.

“For this reason it’s more important than ever for families to consider how they can protect themselves and their loved ones against any financial shocks.

“By putting suitable protection in place – such as life insurance, income protection and critical illness cover – the whole family needn’t be vulnerable if a sudden loss of income should occur.”

The majority of shared living occurs when children remain in the family home during their late teens and 20s while looking for work. This accounts for 37 per cent of family lodgers.

Other common types of inter-generational living include: students who live at home during university (18 per cent), couples living with one set of parents (10 per cent), adult children living with their parents after a relationship breakdown (7 per cent), couples living with their children and parents (4 per cent), single parents living with their parents and their children (3 per cent) and older family members moving in with the family (3 per cent).

Most families view intergenerational living as a temporary situation, for example, while they save for a place of their own or to provide emotional or financial support.

The average duration of this living arrangement is typically up to a year, although 24 per cent say they have lived with another generation for more than five years, and 8 per cent for more than 10 years.

The vast majority of intergenerational dwellers said they have experienced some upsides of the living arrangement beyond pure financial benefits.

Almost half said they enjoyed having someone around for company and nearly a third felt that they were ‘looked after’.

However, two-thirds of people said they had experienced some downsides.

Four in 10 said they could not be as independent as they would like, while 27 per cent had arguments over personal space.

Interestingly, 24 per cent of women said intergenerational living made them feel “like a child” but only 10 per cent of men found this.

Women were also twice as likely as men to feel that others interfered with the running of their homes.

Aviva analysed the circumstances of 14,000 people to produce the report on family finances.

In response to the survey, Graham Vidler, director of communications and engagement at NEST, said: “Intergenerational living will only increase as our population ages, so it’s great to know so many families are enjoying the benefits of living together.

“But it is important people have a choice. That means being financially independent, even into older age.”

He said automatic enrolment onto company pension schemes will help millions more save for the future so they can make their own choices.

Mr Vidler added: “We actually found that over 65s are more likely than younger people to go on holiday, go out for meals and socialise with friends.

“Clearly, tomorrow is worth saving for and we’re looking forward to helping a new generation save for the future they want.”

NEST is a new national pension scheme set up to provide a scheme for employers to help them meet their new duties under automatic enrolment.

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