Two in five people (40%) retiring this year provide financial support to their families, according to new research from Prudential. Despite the financial pressures involved, around 49% of those planning to retire this year still expect to be able to afford to leave an inheritance to their families, although fewer (37%) believe their family actually expects to receive one.
The insurer’s Class of 2013 research, tracks the financial plans and expectations of people entering retirement this year. The report shows that retirees who provide support to dependants pay out on average £240 a month to help their families, with 11% paying out more than £500 a month.
Contributing to their families’ everyday living expenses was the most likely call on the finances of those expecting to retire this year. Around 15% say they provide money regularly to cover items such as food or travel, while 14% help with one-off non-essential items such as holidays, new TVs or even cars.
Prudential’s research shows that those retiring in 2013 expect to receive average incomes of £15,300 a year. This is £3,400 lower than in the Class of 2008 study, when retirees anticipated annual incomes were £18,700 on average.
“While supporting the family will always be a priority, it is important for people also to focus on their own comfort in retirement,” said Vince Smith Hughes of Prudential. “Those who are planning to retire should consider consulting a financial adviser or retirement specialist, to assess the retirement income options that will best suit them and their family situation.”