Pensions News

'A third' use their pension to pay for kids - 19/12/2007

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Figures from Birmingham Midshires have shown that more than a third (36 per cent) of all people aged over 55 in the UK use their pension pots to help their children and grandchildren.

The typical amount used by over-55s around the country to help their younger relatives stands at around £123 per month, which is around 12 per cent of the average amount spent by Britons in this age bracket.

In addition, just over one in ten people (12 per cent) aged 55 or over in the UK use their savings and investment assets to bolster their finances of their nearest and dearest, the latest data from Birmingham Midshires indicates.

Jason Robinson, director of savings operations at Birmingham Midshires, said: "These findings suggest that the over 55s are actually using their pensions and savings to provide a financial lifeline to younger family members - at the same time as adjusting to enormous change in their own income and lifestyle."

In related news, more than one in three (35 per cent) British women in employment have made no contribution to a pension scheme of any kind, compared to 22 per cent of men in the same situation, according to a report released by Scottish Widows recently.

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