One in six UK adults – the equivalent to nearly nine million people – currently provide financial support to older family members, highlighting growing concerns over retirement affordability.
New research from Canada Life found financial advisers are seeing this trend emerge in their own client conversations, with more than a third (36%) noting that providing financial support to older family members has become more frequent in recent years.
Canada Life said the findings underscore the increasingly complex financial pressures families face as people live longer, with traditional patterns of support changing.
Nearly two thirds (61%) of those helping older relatives are contributing towards everyday living costs, while 35% contribute towards care costs in their own home. A third (33%) help with property maintenance and repairs and 29% offer support towards residential care home costs.
However, for those offering financial help, this can add a long-term commitment alongside their own housing costs, childcare and saving for retirement.
One in 10 UK adults is also part of the ‘sandwich generation’, providing financial support to both older and younger family members with 25- 44-year-olds are the age group most likely to be supporting relatives across the spectrum.
Almost nine in 10 (87%) advisers said that when it comes to intergenerational wealth, it will be important for older people to share their plans with their families, while 94% agreed it will be important for families to have open and honest conversations about plans for later life.
Rose St Louis, chief customer officer at Canada Life, said: “Longer lives mean the traditional pattern of financial support flowing from older to younger generations is becoming less clear-cut. Cost of living pressures and unpredictable care costs can mean older relatives find their income is not stretching to meet everyday expenses.
“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.
“With a joined-up view, families can put a plan in place that helps mitigate rushed decisions when an issue arises and reduces the likelihood of financial pressures being passed on unexpectedly.”
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