Financially supporting family members remains high on the agenda for a third of potential retirees, who spend more than £3,700 a year helping loved ones6
With retirees planning on an average retirement income of £20,663, they anticipate around a fifth of this will be used to support the finances of younger family members.
Accommodation and cash top priorities
As part of this support, 28% say they allow their family to live with them rent free, while one in four give regular cash to help cover living costs. One in five also cover some or all of their family’s household bills and 19% pay for treats such as holidays. A further 15% say they have helped fund a property purchase, and 13% pay for university fees.
Your financial security matters too
It’s only natural to want to help support family members, particularly in the current economic climate. However, pension savings have also been impacted by the pandemic and this could see some retirees having to tighten their belts. In turn, this could affect how much they can financially support others. We can help you work out how much support you can realistically provide without compromising your long-term financial future. 6Key, 2020