More than one million families are expected to contain more than one retired generation by 2034 – a 32% increase on the 813,000 multi-retiree families seen currently, according to a new study.

The research by wealth manager St James’s Place found that the growth rate of multi-retiree families is much faster than previously predicted as the population ages.

Over half (55%) of future retirees also expect to provide financial support in retirement to other generations – compared to just over a third (37%) of current retirees.

The demographic change will put more pressure on retirement incomes, SJP predicts.

The change is also altering Financial Planning with future retirees shifting plans for later life so they can financially support others, with 14% planning to work in retirement to supplement income and 12% delaying retirement to build a bigger pot, the study found.

Because of the shift, retirement income will need to stretch across multiple generations, spurring many to “reassess” their retirement plans, says SJP.

The study forecasts that by 2029, 963,000 families will contain more than one retired generation – an 18% increase on the 813,000 multi-retiree families that exist currently.

Growth in this sector will also speed up with nearly 1.4m families expected to contain more than one retired generation by 2044, the study found.

Multi-retiree family growth rate increasing faster than previously projected

Source: St James's Place Wealth Management 

SJP’s analysis found that there are currently 813,000 families with more than one generation retired –100,000 higher than projected in 2018, when it was estimated there would be 704,000 families containing more than one retired generation in 2024.

Claire Trott, divisional director for retirement and holistic planning at St James’s Place, said: “With people living longer, retirement provision more and more becoming the responsibility of the individual, and the economic landscape evolving, 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.

“Future retirees are increasingly expecting to financially support others once retired, and retirement income is having to stretch in multiple directions. In order to do this, our approach to retirement planning must change.”

• Research was conducted for St James’s Place by Opinium, among 4,000 UK adults between 27 February – 8 March 2024. All results are weighted to nationally representative criteria.