Third of New Pensioners Bankrolling 3 Generations

Published / Last Updated on 13/04/2018

pensioners annuity incomePrudential has today released details of part of its yearly ‘Class of 2018’ report on new pensioners and those planning to retire in 2018.

The Bank of Mum, Dad, Granny and Grandad is very much alive and well in the UK.

According to Prudential:

  • 31 per cent of 2018 new retirees help their families out financially
  • The average help is £360 pm (£4,320 pa) providing financial support for usually three people
  • 56% of our children are the most likely to receive financial help
  • 25% are grandchildren receiving help
  • Surprisingly, 8% of new pensioners are even helping their elderly parents and 2% are helping, no doubt, even older grandparents
  • 1 in 5 new pensioners expect to support the wider family by more than £500 pm (£6,000+ pa)

Comment

The current ‘golden’ generation of retirees generally have better and safer, inflation linked pensions than their parents did or their children can hope to have.  In addition, they have benefitted from huge UK property price increases during the eighties, nineties, noughties and this decade too.  For most people, the values of property owned in the UK have increased 8 x fold since 1980 (15 x fold in London) and at least trebled (5 x fold in London) since 1990.  We also saw a report this week that 75% of all UK property is owned by the over 50s. See https://www.telegraph.co.uk/property/news/over-50s-hold-three-quarters-uk-housing-wealth/

Is it any wonder that new retirees are in a better financial position to help their families than ever before?


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