One in three workers heading for retirement in the next year are bankrolling three generations of their family.
New research shows new pensioners give cash hand-outs averaging £4,300 a year to support at least three family members.
Hard-up children struggling to make ends meet are the most likely to benefit from their parent’s cash, but grandchildren, parents and even grand parents can take a share of the money as well.
The findings by pension provider Prudential show that retirement does not necessarily mean financially supporting a family stops.
The researchfound that on average, someone retiring this year expects to pay £360 a month to help relatives – a total of £4,320 a year.
Money spent on living costs
For one in five retirees, this will rise to at least £500 a month – or £6,000 a year.
The money mostly goes towards day-to-day bills, said 27% of those retiring this year.
For others, the cash is spent on university fees and living costs (23%) or helping other family members buy a home (22%).
Women are the most generous, offering financial aid of around £25 a month more than men.
Not everyone retiring has family to help. One in four do not provide any financial support, while 43% have no one relying on them to make ends meet.
Financial pressure
Stan Russell, a retirement income expert at Prudential, said: “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.
“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 company compiled the data from speaking to 9,896 adults aged over 45 who have not retired but including 1,000 who will retire during the next 12 months.
