Parents are giving their retirement savings to adult children, a new report reveals.

Research from Scottish Widows shows that more than a third of parents who have given their offspring a loan had meant to use the funds for their retirement.

The average amount given by parents to their grown-up children is £12,610, meaning that the collective loan offered to adult offspring - or 'sap fund' - is £67 billion.

Anne Young, savings expert at Scottish Widows, notes that despite the credit crunch the loans offered to relatives are growing larger.

"Both the amount of money given and the number of children 'sapping' has increased in the last year, to the extent that the overall sap fund is well in excess of £60 billion," Ms Young says.

Paying off debt was the reason give by 42 per cent of children for loan requests, while 29 per cent wanted money for a house purchase or deposit on a property.

Fool.co.uk has this week noted that couples find property investment easier than single people.
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