Retirees spending £3k per year helping struggling family members

People set to retire this year will be spending £3,000 per year on average helping family members who are struggling financially. That was the finding of a Prudential survey, which concluded many retirees would be feeling the pinch immediately after they quit work.Nearly 40% said they were helping their families financially and the average retiree with dependants is supporting two people costing £3,000 a year.Some 24% say they will not be able to afford to leave any inheritance at all yet nearly a third still believe they will leave almost £180,000.{desktop}{/desktop}{mobile}{/mobile}The research found retirees who still provide regular support to their dependants pay out an average of £250 per month, or £3,000 over the course of a year.This year's retirees who have dependants are providing financial support for two other people on average – most likely to be children or grandchildren.Stan Russell, retirement income expert at Prudential, said: "Our research shows that retirement doesn't necessarily mean an end to family financial commitments. "Although the incomes people expect to retire on in 2014 have increased for the first time in three years, many retirees will still be feeling the pinch when they first stop working."Increasingly we're seeing retirement incomes being stretched in ways that wouldn't have seemed likely a generation ago."Giving a financial helping hand to family is very important, but people retiring this year are risking their own standard of living with the levels of support they provide."At least half of those dependants being supported by this year's retirees were aged 25 or under.Helping out with everyday living expenses is the most common reason given for supporting their dependants.The research shows that 14% provide help with everyday living costs, such as food or travel, while 11% hand over money for luxury items such as holidays, new cars or TVs.Some 9% said they were helping the financial upkeep of their grandchildren, paying towards university costs (7%), contributing towards household bills (7%) and covering other essential outgoings such as car insurance or education (7%).Prudential's study shows that 28% of those retiring this year have families but currently do not provide them with any financial support, while 33% do not have any dependants.

Retirees spending £3k per year helping struggling family members

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