British families are becoming like ant hills as cash-strapped kids return home and work with parents for a healthier financial future.

Research from Friends Provident revealed a new trend as 3.5 million adults in their 30s returned to the family home to escape from rising debts and poor pensions.

The forming of an 'ant hill' like family can be beneficial, according to the new findings, as parents and grown-up children can pool mortgages, bills and pensions for larger financial rewards.

"As 30-somethings fail to invest in pensions and an ageing population spends its children's inheritance, we are seeing families moving back in with each other and sharing the cost of home and mortgage," said Jeremy Ward, head of pensions marketing at Friends Provident.

"The report uncovers people creating new strategies to deal with how and when they retire. But it also uncovers worrying evidence that many people in their 20s and 30s have no idea how and when to start saving for their futures."