40% of retirees financially supporting families

Two in five people (40 per cent) retiring this year are currently providing support to their families, according to new research from Prudential.

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Two in five people (40 per cent) retiring this year are currently providing support to their families, according to new research from Prudential.

When retiring finances will naturally drop, leaving those depending on their parents at risk.

The company's Class of 2013 research tracked the financial plans and expectations of people entering retirement this year. It shows retirees who provide support to dependents pay out on average £240 a month to help their families, with 11 per cent of them handing over more than £500 a month.

People were most likely to call on their parents for help with everyday living expenses, with around 15 per cent of respondents regularly providing money to cover items such as food or travel.

Non-essential items are also being provided for, with 14 per cent helping family members with the costs of things such as cars and holidays.

The make-up of UK households has changed dramatically over recent years, with many retirees having adult children and even grandchildren living with them. Of those surveyed, around two-thirds (68 per cent) planning to retire this year will have no dependants living with them.

Almost a sixth (16 per cent) of this year's retirees have children under the age of 25 living at home with them, while 13 per cent have children aged 25 and over and three per cent have grandchildren as housemates too.

Around 11 per cent of people giving up work this year currently help out with their families household costs, such as energy or phone bills, while ten per cent give money to support their grandchildren. Rising energy prices are set to be a problem for those already struggling with their finances.

Retirement expert at Prudential Vince Smith Hughes said: "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."

By Joe White

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