Retirees provide financial support to families

More than a third of people retiring this year are currently supporting their families financially, according to a survey by Prudential. Find their freephone telephone number here.

The survey of more than 1,000 people planning to retire in 2015 found that 36% are providing financial help to relatives.

Retirees are paying an average £250 a month and almost £3,000 a year to their families. Almost 1 in 8 (12%) pay more than £500 a month to family members.

Of the 2015 retirees that subsidise their families:

  • 56% give money to their children and their partners
  • 27% provide support to their grandchildren and their partners
  • 7% help their parents.

Stan Russell, retirement income expert at Prudential, said:

“A large proportion of this year’s retirees will be providing support to their families through one form or another and as a result they will see their retirement incomes squeezed.

“Even if the financial support they offer is minimal, many new pensioners will continue to play an important role in providing a home for other family members. This may of course have an impact on any future plans to downsize and will obviously need to be factored into a retiree’s budgeting plans for their post-work years.”

Talk to us about budgeting in retirement.