Financial support from grandparents to their families is increasingly needed just to keep them afloat according to recent research by The Scottish Widow’s Centre for the Modern Family:
- Individual grandparents give around £2,200 a year to support their families
- 85% did not make provision for these outgoings
- More than half (53%) feel under financial stress in their retirement
- 14% say this financial stress is a direct result of supporting their children and grandchildren
- 15% make regular payments to their children to help cover the cost of rent, mortgages and household bills.
These figures arose out of specific research into how much grandparents – known by the Centre as Silver Supporters – are under pressure to contribute to the cost of Christmas, with an estimate that grandparents are spending £932 million on supporting their families through the festivities.
Often, the generous older generations feel compelled to help their children with financial support.
But when the Centre uncovered this challenge at Christmas, it led to the even bigger discovery of the extent to which grandparents – who are likely to be retired or working their final few years before retiring – are financially supporting their families throughout the entire year.
This can have a massive practical impact on the silver supporters involved especially if, as the figures suggest, 85% did not make provision for these outgoings with over a third (36%) of grandparents saying they had to make sacrifices to manage the financial support they gave to their families over the festive period.
For more information on planning your finances for retirement, allowing for any support your family may need, contact Rawlinsons Pensions and Investment Planning on 01733 568321.
The full report can be read at http://reference.scottishwidows.co.uk/docs/costofchristmas.pdf.
Rawlinsons P.I.P. Limited is an appointed representative of David Booler & Co which is authorised and regulated by the Financial Conduct Authority (FCA registered number 146287).