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13 April 2018

2018 pensioners bankrolling three generations

2018

Stan Russell,
Senior Business Development Manager

  • Nearly a third (31 per cent) of those planning to retire this year are helping out their families financially
  • Retirees dishing out an average £4,300 a year to dependants and providing support for three people
  • Children are the most likely recipients of financial help but grandchildren and even parents are receiving money too

Nearly a third (31 per cent) of those planning to retire this year are helping out their families financially to the tune of around £4,300 a year, increasing pressure on their own retirement plans and income, new research from Prudential shows.

On average they are providing financial support to three people, with their or their partner’s children the most likely (56 per cent) to be receiving money. Similarly, grandchildren (25 per cent) are also likely to receive help and even in some cases parents (8 per cent) and grandparents (2 per cent).

The findings – part of Prudential’s unique Class of 2018 study which is now in its 11th year recording the financial plans and aspirations of people planning to retire in the year ahead – highlight how retirement does not necessarily mean an end to supporting family.

Taking all monthly payments into account, those planning to stop work this year expect to give their extended family £360 a month on average, adding up to £4,320 after tax a year. Nearly one in five expecting to retire this year estimate they provide more than £500 a month to family members.

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M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority.

M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.

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M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority.

M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.

M&G plc は、イングランド及びウェールズで設立・登録。本社登録地は10 Fenchurch Avenue, London EC3M 5AG。登録番号11444019。M&G plcは持ち株会社で、その子会社の一部はPRA(健全性監督機構)及びFCA(金融行為規制機構) に認可され、それらの規制対象となっています。

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M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority.

M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.