OAPs face having to fork out for family
UP TO a quarter of people retiring today think they might have to provide some sort of support in their retirement to their children and grandchildren.
The worrying research, carried out by wealth management firm St James’s Place, suggests that the support will take the form of help with living expenses, school and university fees, and childcare.
This is likely to mean a change in the way we think about retirement planing, according to Claire Trott, head of the company’s pensions strategy.
She said: “With people living longer, the make-up of today’s modern family changing, and retirement provision more and more the responsibility of the individual, the way we need to think about planning for the future has fundamentally shifted. “The next generation of retirees can’t expect to follow the same path as those currently in retirement.” Only seven per cent of current retirees help people other than their partner in retirement, and the research highlights how retirement income will increasingly need to stretch not just across generations but often within complex family structures.
Over a fifth of those questioned feel worried by the prospect of providing financial help to other generations.
Claire said: “Building sufficient funds for your future while supporting other generations can seem a daunting task. It’s unsurprising that one in five people say they either feel ‘pressurised’ or ‘worried’ by having to provide financial support to others.
“We see consistently the value of advice in navigating this complexity. Our research found that eight in 10 people who receive ongoing face-to-face advice believe they have sufficient funds to fulfil their retirement plans. This compares with only 35 per cent who don’t receive advice. It’s clear advice has an important role to play in ensuring a comfortable and confident financial future.”
● If you’re buying your first house, go and see a mortgage broker first. ● Don’t opt out of your employer’s pension scheme unless you really have to.