One in six (16%) UK adults, equivalent to nearly 9m people, provide financial support to older family members, according to a new study.
The study also found that more than a third (36%) of financial advisers reckon that providing financial support to older family members has become more common.
The research was conducted by provider Canada Life which said its findings underline the increasingly complex financial pressures facing families as people live longer.
It pointed out that traditional patterns of financial support are changing, with financial help no longer flowing solely from older to younger generations. Instead, many adults are stepping in to help parents and older relatives meet the cost of later life.
It said that for those providing support, helping an older relative can add a long-term commitment to an already complex financial balancing act, alongside housing costs, childcare and saving for their own retirement. The firm said that against a challenging economic backdrop, it can add another consideration for families managing their financial priorities.
Nearly two thirds (61%) of those helping older relatives are contributing towards everyday living costs, highlighting growing concerns over retirement affordability and suggesting many older people’s incomes are falling short. More than a third are helping to cover at-home care costs for a relative (35%) and a similar proportion are contributing towards property maintenance and repairs (33%).
Top reasons for financially supporting older family members
Everyday living costs | 61% |
Care costs in their own home | 35% |
Property maintenance and repairs | 33% |
Residential care home costs | 29% |
Specific major expenses e.g. cars, holiday | 29% |
Source: Canada Life multi-year Life100+ research programme
One in ten UK adults are part of the ‘sandwich generation’, providing financial support to older and younger family members, with 25 to 44-year-olds the age group most likely to be supporting relatives up and down the family tree.
When asked about intergenerational wealth in the context of increasing longevity, 87% of advisers agreed that it is important for older people to share their plans with their family, and 94% agreed that it would be important for families to have open and honest conversations about plans for later life.
Rose St Louis, chief customer officer, Canada Life said: “Longer lives mean the traditional pattern of financial support flowing from older to younger generations is becoming less clear-cut.
“For advisers, this means understanding both the financial and emotional toll these pressures can take on clients, and tailoring support accordingly. Where appropriate, bringing multiple generations into the planning conversation earlier can help families consider the choices ahead around retirement income, potential later life costs, and inheritance."
• Canada Life surveyed more than 2,000 members of the UK public and 240 financial advisers for the third report in its multi-year Life100+ research programme.