BURDENS OF FAMILY

Almost two million people aged over 50 risk jeopardising their own retirement plans because they are working to support their children’s or parents’ needs.

The latest Real Retirement Report from Aviva reveals that while huge numbers of over-50s continue to work longer, they are sacrificing saving for a comfortable retirement to help fund children and ageing parents.

The financial pressures facing younger people mean over a third of workers aged 50 and above say they will retire later than expected because their children are still financially dependent on them.

And around a tenth say the only reason they are still working is to support the financial needs, including healthcare, of parents.

Financial dependents are also affecting people’s career opportunities in later life. One in six over-50s say their responsibilities to younger or older family members have limited their prospects.

And a quarter admit they have sacrificed their ability to save for a more financially secure retirement because they need to support their adult children.

A tenth have stopped saving all together to support their children and/or parents.

Lindsey Rix, managing director of savings and retirement at Aviva, said: “With children flying the nest later and later, many over-50s are shouldering the responsibility of putting their family’s financial needs ahead of their own for a prolonged period.

“As a result, many are facing a dilemma over delaying their retirement, while others are struggling to maintain their retirement savings habit.

“Workers of this age are in a key stage of retirement planning and would benefit from saving as much as possible.”

However, not all over-50s are being forced to work, as two in five chose to stay at work because of job satisfaction and fulfilment, rather than financial reasons. A third of those retiring later say they are doing so because they enjoy the mental stimulation of their job.