Parents saving for their children and not their own retirement might be doing the entire family a “disservice” in the long-term, a money coach has warned. 

New data from the Central Bank has found that more Irish people are saving than ever, with an average household saving rate of 13.8%. 

Among parents, one-in-three are putting away cash for their children’s future - a trend money coach Kel Galavan said was due to the changing nature of society. 

“A lot of things are changing,” she told Moncrieff. 

“[In] our parents’ time, it was get a job, get married, buy a house - you ticked along.

“But now, the amount of ups and downs; recessions, housing bubbles and the cost of rearing a child in Ireland is just skyrocketing. 

“So, parents are trying to do their best and give their kids the things they never had.” 

A man walking past 'For Sale' signs in Dublin. Image: Leah Farrell / RollingNews.ie

Due to the soaring price of property, Ms Galavan said getting a house will not be “a possibility” for many young people and this is influencing their parents’ financial habits. 

“Sometimes I think parents, they’re going, ‘We’ll help you to get on the property ladder and get you started,’” she said. 

“The other side to that though is that if parents are not saving for themselves and minding themselves, they leave themselves vulnerable for the future. 

“And that’s not a very good thing either.” 

An AIB ATM in Dublin. Image: Sam Boal/RollingNews

However, Ms Galavan warned this might turn out to be a false economy in the long-term. 

“If you step back and look at it, you can take a loan out for college but you can’t take a loan out for your retirement,” she said. 

“If you leave yourself where you’re quite vulnerable, you’re actually long-term doing a disservice to yourself and to your kids.” 

Ms Galavan added that no child wants to worry about their parents in their old age.  

“Your kids want to go off and design their own lives,” she said. 

“They don’t need to be worrying about you. 

“At least if you have your pension in place and you’re feathering your nest in that direction, then your kids can just go and enjoy themselves.” 

According to a survey by AskPaul.ie last year, 98% of people believe they need more than the state pension to support themselves in retirement.

Main image: A mother giving her children pocket money. Picture by: Alamy.com