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Retirees provide financial support to families

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

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.