Families opting to give pension top ups as Christmas gifts

A pension top-up is proving a suprisingly popular alternative Christmas gift, according to a new survey. The survey for pensions and insurance provider Friends Life found that cash gifts are becoming popular all over the UK, particularly in Scotland and the West Midlands, with some gift givers going further and making a pension contribution their way of saying "Merry Christmas."Over a third (35%) of the UK population plan to gift cash for Christmas this year rather than handing over a traditional present, according to research from Friends Life.On average, people will give £114, while one in twenty (5%) will give between £200 and £500. Giving cash is often related to helping loved ones financially, says the research. Respondents say they sometimes give money to help with both immediate financial issues and long term savings. One in ten (9%) of 25-34 year olds says they have been given a contribution to a pension as a gift at Christmas and have received contributions worth up to £2,000. Some gift givers say they are also helping out with loved ones' mortgage costs.{desktop}{/desktop}{mobile}{/mobile}One in 10 men admitted they preferred to give financial gifts simply to "relieve the stress of shopping", while over a third of people who gift money prefer it because it means the recipient can buy what they really want. A quarter of people (25%) believe a financial gift will be better received than a traditional one.Lindsay Forster, consumer marketing director at Friends Life said: "'Christmas is a time for giving and our research shows that increasingly, people are opting to give money so the recipient can make a choice on how they use it. It's a great opportunity to help your loved ones think about how they manage their money, giving cash can help people to save towards things they really need."Cash and gift vouchers are the most popular financial gifts with 32% planning to give gift vouchers. People are most likely to give money as a gift to their children (28%) with one in seven (14%) giving to nephews or nieces and one in ten (9%) to siblings.When it comes to how and why people are planning to gift money this Christmas, the research found people want to contribute to large expenses and to help ease financial strain. One in 20 (5%) plan to contribute towards their loved one's mortgage costs, while one in ten (10%) of those over 55s plan to give money to help someone in financial difficulty.

Families opting to give pension top ups as Christmas gifts

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