Over a third of people set to retire in 2020 are still financially supporting family members, according to new research.

The research from Key said 34% of those planning to retire in 2020 support their families with regular handouts adding up to over £3,700 per year.

With retirees surveyed planning on an average retirement income of £20,663, the research suggests that they anticipate they will be using almost a fifth (18%) of this income to support the finances of younger family members.

One in eight (12%) contribute £500 or more to family members each month.

Will Hale CEO at Key, said: “Whilst many older people enjoy treating their loved ones – even if it is just paying for a nice meal - a third of those who intend to retire in 2020 are doing more than this - regularly topping up their wider family’s finances.  The current economic situation is likely to place even more pressure on people’s finances but with the pandemic impacting pension savings this could see some retirees having to tighten their belts and could impact their ability to continue to support younger generations.

“It is important that families have open discussions about their finances.  Many younger people would be horrified if they knew older members of their family were struggling due to their generous natures.  Taking the time to speak to a specialist adviser is a sensible step to look across all your assets and understand how much support you can provide. Using housing equity is one-way older people can continue to support family and/or top-up their own income.”  

Research conducted by Research Plus on behalf of Key between 18th and 31st December 2019 among a sample of 1,000 people expecting to retire during 2020.