Class of 2017: More than a third of retirees using retirement income to help dependants
24 May 2017
- More than a third of those planning to retire this year are helping out their families financially, to the tune of nearly £260 a month on average
- They are helping out their children, grandchildren, parents and even grandparents
- Increasing numbers of retirees are still planning to leave an inheritance, averaging £173,000
More than one in three people planning to retire this year (34 per cent) are financially supporting family members, contributing an average of nearly £260 a month and adding to the squeeze on their retirement incomes, according to new research1 from Prudential.
Financial dependants of this year’s retirees are most likely to be their children and their children’s partners (45 per cent), followed by their grandchildren and their partners (24 per cent), with their parents making up 9 per cent, and a surprising 5 per cent being their grandparents.
The findings are part of Prudential’s unique annual research into the finances, future plans and aspirations of people planning to retire in the year ahead. This year’s retirees – the Class of 2017 – provide the tenth annual set of comprehensive insights into the post-financial crisis retirement landscape.
On average those retirees who provide financial support to loved ones give money to more than four people, and among the most common reasons are, help covering everyday living costs (22 per cent of retirees who support dependants), and paying some or all of regular household bills (14 per cent). Meanwhile, one in five retirees who support their dependants (20 per cent) pay for one-off large purchases such as a holiday or new car, and (11 per cent) cover non-essential costs such as club memberships and subscriptions.
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