One in five (19%) investors on the AJ Bell platform plan to use money from their ISA, pension or investment account to help family members battle the rising cost of living.

A total of 7% of AJB customers have already used money from their investments to help family and friends, with 13% considering it.

The majority (52%) were making gifts in excess of £2,000.

The money was mostly being used for a specific purpose like help with mortgage payments (12%), household bills (16%), a house deposit (13%), to cover rising rents (5%), or for buying food (2%).

Money was also being used to help cover one-off costs, with 12% handing over money for items such as buying a new car or a boiler replacement.

A quarter (25%) of those handing over money from their investments to friends and family said the money was not intended to cover a specific cost.

Laura Suter, head of personal finance at AJ Bell, said: “The Bank of Mum and Dad, and the Bank of Granny and Grandad, will be dipping into their savings to help their family with the cost of living at the moment. With rent, mortgages, food and just about every other cost rising it’s understandable that those with more money stashed away want to help their family and friends.

“Younger people have less financial resilience, generally being in lower-paid jobs, having had less time to build up savings and being in more precarious housing situations, so they are more likely to need a cash boost at the moment.

“Older generations may also prefer to gift money while they are still alive, so they can help family out now and see the benefit of their support. But anyone gifting money needs to make sure they aren’t depriving themselves, particularly if they may face costs later in life.”

• AJ Bell surveyed 2,700 customers in December.