A third of those planning to retire last year, expected to support their families financially, providing handouts totalling over £3,700 a year, or £311 a month, although 12% expect to contribute £500 or more1. Top priorities for those supporting loved ones include living and accommodation costs. Almost a quarter (24%) will give family members regular cash to cover everyday living costs such as food, and 20% cover some or all of their household bills. A further 19% pay for treats such as holidays and 15% have put money towards a property purchase.
Don’t forget your financial security
It’s natural to want to provide support to loved ones, especially with the current economic situation impacting people’s finances. However, with the pandemic also affecting pension savings, this could restrict your ability to continue to support family members. Talking to us can help you quantify how much support you can provide without compromising your financial future.
The value of investments and income from them may go down. You may not get back the original amount invested. Inheritance Tax Planning is not regulated by the Financial Conduct Authority. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.