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Recent retirees are increasingly being called upon to provide financial support to their families, which is placing additional pressure on their retirement income.
This is the finding of new research by Prudential, which revealed that 31% of those planning to retire this year are helping out their families by as much as £4,300 a year.
On average they are providing financial support to three people, with their or their partner’s children the most likely (56%) to be receiving money. Similarly, grandchildren (25%) are also likely to receive help and even in some cases parents (8%) and grandparents (2%).
The money is most commonly used to cover everyday living costs such as food and travel, according to 27% of those who give money monthly. However, 23% say they are providing financial support to help with university education fees and living costs, while 22% say some of the cash goes to help the recipient get on the property ladder.
“Increasing financial pressure faced by people of all ages, such as the cost of university education and the rising cost of buying a home, means that providing financial support to family members continues well into retirement,” commented Stan Russell, retirement income expert at Prudential.
“While it’s understandable so many people want to financially support family members, it is important to make sure they have enough money set aside themselves to cover their own living costs and don’t put their retirement at risk,” he added. “Saving as much as possible as early as possible and seeking professional financial advice is crucial for those who don’t wish to risk feeling the pinch in their own finances by helping out family members.”
If you need advice and assistance with your pension, we can help. We all have questions and concerns about saving for a time when we are no longer able to work, but our expert team here at Prosperity Financial can help you make the right choices for your future. Contact us today to find out more about our services.
