Third of retirees financially supporting family

A third of potential retirees continue to financially support their families, with regular handouts amounting to more than £3,700 a year4. Those planning to retire expect an average income of £20,663, but anticipate around a fifth of this (£3,700) will be used to support the finances of younger family members. This equates to £311 a month, although 12% say they contribute £500 or more.

Supporting the family

Accommodation and living costs are the top priorities for those supporting loved ones, with 28% allowing their family to live with them rent free. One in four also give family members regular cash to cover everyday living costs such as food, and one in five cover some or all of their household bills. A further 19% pay for treats such as holidays, 15% have put money towards a property purchase, and 13% pay for university fees.

Think about your financial security too

We understand it’s only natural to want to support loved ones, particularly with the current economic situation putting more pressure on people’s finances. However, with the pandemic also impacting pension savings, this could affect your ability to continue to support family members. Talking to us can help you understand how much support you can realistically provide so that you don’t end up compromising your long-term financial future.

4Key, 2020

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