Almost a third (31 per cent) of pensioners are supporting family members with an average of £4,320 per year, or £360 per month.
According to new research from Prudential, people who are set to retire this year are supporting an average of three relatives, including their children, grandchildren and elderly parents. Almost one in five of the people who plan to retire this year estimate that they provide at least £500 per month to family members.
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This money is mainly used to pay for everyday expenses such as food and travel, although 23 per cent of those surveyed said that they were helping younger family members with education fees and expenses, while 22 per cent were helping their dependents to 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 in to retirement,” said 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.
“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.”
The research was carried out as part of Prudential’s ‘Class of 2018’ which tracks the financial plans and aspirations of people planning to retire in the year ahead.
Just one quarter (26 per cent) of those surveyed said that they do not provide their families with any financial support, while 43 per cent said that they did not have any dependents.