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Retirees ‘to spend £4,300 a year supporting family’

Around 1 in 3 parents and grandparents entering retirement this year plan to spend more than £4,300 a year supporting family members, according to research by Prudential.

In a survey of 9,896 adults, 31% of those planning to retire in 2018 said they expect to use their retirement income to provide financial support to their families.

Those planning to offer support expected to give £360 a month to 3 people on average, coming to £4,320 a year after tax.

Most expected to provide this to younger generations, with children (56%) and grandchildren (25%) the most common recipients.

A minority also planned to provide financial help to parents (8%) or grandparents (2%).

Stan Russell, retirement income expert at Prudential, said:

"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."

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