40pc of retirees still support family

Nia Williams

April 24, 2013

The insurer’s Class of 2013 research found that retirees who provide support to dependants pay out on average £240 a month to help their families, with 11% paying out more than £500 a month.

Contributing to their families’ everyday living expenses was the most likely call on the finances of those expecting to retire this year with around 15% saying they provide money regularly to cover items such as food or travel, while 14% help with one-off non-essential items such as holidays.

Vince Smith Hughes, retirement expert at Prudential, said: “With nearly half of those expecting to retire this year still providing financial support to their families, retirement income is increasingly becoming a family affair.

“Issues in the housing and jobs markets clearly make it financially difficult for adult children to leave home and most parents are happy to support them where possible.

“If they can afford the support there is no issue but with expected retirement incomes at a five year low any additional outgoings could cause financial strain.

“While supporting the family will always be a priority it is important for people also to focus on their own comfort in retirement.

“Those who are planning to retire should consider consulting a financial adviser or retirement specialist, to assess the retirement income options that will best suit them and their family situation.”

The survey also shows the make-up of UK households of those about to retire with adult children and even grandchildren still living in the family home.

Around two-thirds (68%) of those planning to retire this year will have no dependants living with them.

Almost a sixth (16%) of this year’s retirees have children under the age of 25 living at home while 13% have children aged 25 and over still living with them.

Around 4% even share their homes with a child’s partner while 3% count their grandchildren as housemates.

Despite these financial pressures, around 49% of those planning to retire this year still expect to be able to afford to leave an inheritance to their families, although fewer (37%) believe their family actually expects to receive one.

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