Parents facing financial squeeze

Parent and child
Image caption Parents are among those who are not saving very much, the report says

People aged in their late 30s or who have children aged under 16 are facing the greatest squeeze on their finances, a report on UK savings has suggested.

Divorcees have also found themselves unable or unwilling to save, according to the report by Scottish Widows.

Meanwhile, the so-called "Bank of Mum and Dad" has continued to do brisk business in tough economic times.

The report claimed that families were giving or loaning nearly £13,000 to children and grandchildren on average.

The continued cash outflow - used for living expenses, paying off debts or buying a house - was "generally unexpected and can be a drain on finances at a time the parent can least afford it", the report said.

Rising living costs and the risk of unemployment have put family finances under pressure.

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