Consumer debt and pensions crisis causing UK families to shrink, says research

Mon, 10 Apr 2006

The average size of a family is shrinking and it has been partly blamed on financial constraints such as personal loan repayments and a lack of adequate pension funds, reveals new research.

According to Skipton Building Society the average family now only has 1.3 children, an almost 50 per cent reduction from the traditional 30-year-old family set-up of parents with 2.4 children.

In a survey conducted by the building society, 89 per cent said the rising cost of living, including making pensions contributions, was the main constraint preventing them from having children.

Although one in five said they had decided to not have children, many still aspired to raising a family, but said money worries were responsible for delaying parenthood.

Over a third of 25-35-year olds said they have delayed or are delaying having children due to their financial situation, whether it be struggling with debt repayments, trying to get a mortgage or making regular pension contributions.

Jennifer Holloway from Skipton Building Society said that today's financially pressured lifestyle is delaying people starting their own families.

"The fact that a fifth of the UK's adults are choosing to remain childless sends a strong message about modern life and the pressures it brings - particularly financially," she said.

"There are a lot of factors contributing to this, including consumer debt, pension shortfalls and rising house prices - all of which has led many people to choose to enjoy the lifestyle they have instead of adding more pressure with the cost of bringing up a child," she added.

For any aspiring parents, she recommends they start to look at their financial situation more carefully, perhaps putting some funds into a savings account or choosing to make some sacrifices in terms of their daily or luxury spending habits.

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