Over-55s helping out family members financially

Almost half of over-55s in the UK have given financial assistance to their family or close friends in the last year, research has revealed.

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Research by insurance provider Aviva has revealed that 41% of over-55s have helped out their family or close friends financially in the past twelve months.

Far from providing a small cash injection for relatives, the research found that the older generation are giving away an average of £1,430 ñ 9% of their average annual income.

ìEvery age group has come under financial pressure as a result of the current economic situation, but the over-55s have their own unique pressures,î said Clive Bolton, the ‘at-retirement’ director at Aviva.

ìTraditionally, this is when they are finalising their retirement plans or surviving on a fixed income, and so unplanned costs and supporting others can have a significant impact on their future standard of living.î

The most likely to have received financial help from the older generation were adult children, with 23% of over-55s lending their grown-up son or daughter money.

Worryingly, it was found that 20% of the long-term retired, those aged over 75, have given financial assistance to their children in the past year.

The most common reason for the over-55s helping out others was to pay off debts or outstanding bills, with 31% of older people lending money for this reason.

ìPeople need to plan for the unexpected when they are thinking about their retirement income,î added Mr Bolton.

ìLife rarely goes as planned and so it is vital people budget for extra costs such as helping out their adult children or parents financially, or even what they will do if they or their partner are unable to work for as long as they had planned.î

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