17th April - More than 80,000 households have three generations living in them as financial pressures force families to move in together, research shows.
The number of so-called 3G families looks set to increase as lower retirement incomes leave pensioners unable to afford to live on their own, while high house prices and the problems caused by the credit crunch are preventing many young people from getting on to the property ladder, according to insurer Prudential.

The group estimates 82,600 households have three generations living under the same roof, but it said the financial support being offered by the middle generation extended well beyond this.

Around 10% of adults said they had an elderly parent or relative living with them, while 18% said their grown-up children still lived at home.

Even parents whose children have moved out find themselves providing financial support, with 11% saying they give their offspring money to help them make ends meet, while a further 3% do the same for elderly relatives.

The study found that around 1% of adults are supporting both their children and their parents financially, handing out an average of £126.17 a month.

The situation looks set to get worse, with 74% of parents worried their children will be unable to buy a property and will live at home until they can afford a deposit, probably until well into their adult lives.

At the same time, 44% of people have parents or elderly relatives aged over 60 and a fifth have considered asking them to come and live with them.

Gary Shaughnessy, managing director of Prudential retail life and pensions, said: "The phenomenon of the 3G family does not come without a cost. For the middle generation the financial drain of providing support for both the younger and older generations could have a detrimental impact on their ability to save adequately for their own retirement. In turn, they too may eventually become financially reliant on their children in old age."

On top of the financial support they provide, 15% of people said they had adult children or elderly relatives living near by whom they regularly looked after and did chores for. Experian questioned 1,500 people between February 29 and March 5.