Nine million people in the UK supporting older relatives financially
- One in six, equivalent to nine million UK adults, currently provides financial support to an older family member
- Help with everyday living costs is the most common reason for support, followed by care costs and property maintenance
- One in ten are in the 'sandwich generation' financially supporting both older and younger family members
New research from Canada Life1 reveals one in six (16%) UK adults, equivalent to nearly 9 million people, currently provides financial support to older family members.
The findings underline the increasingly complex financial pressures facing families as people live longer. Traditional patterns of financial support are changing, with financial help no longer flowing solely from older to younger generations. Instead, many adults are stepping in to help parents and older relatives meet the cost of later life.
For those providing support, helping an older relative can add a long-term commitment to an already complex financial balancing act, alongside housing costs, childcare and saving for their own retirement. Against a challenging economic backdrop, this can add another consideration for families managing their financial priorities.
Nearly two thirds (61%) of those helping older relatives are contributing towards everyday living costs, highlighting growing concerns over retirement affordability and suggesting many older people’s incomes are falling short of the cost of a basic standard of living.
More than a third are helping to cover at-home care costs for a relative (35%) and a similar proportion are contributing towards property maintenance and repairs (33%).
Top reasons for financially supporting older family members:
|
Everyday living costs |
61% |
|
Care costs in their own home |
35% |
|
Property maintenance and repairs |
33% |
|
Residential care home costs |
29% |
|
Specific major expenses e.g. cars, holiday |
29% |
One in ten UK adults are part of the ‘sandwich generation’, providing financial support to both older and younger family members, with 25 to 44-year-olds the age group most likely to be supporting relatives up and down the family tree.
Financial advisers2 are also seeing this trend emerge in their own client conversations. More than a third (36%) say that providing financial support to older family members has become more frequent in recent years.
Rose St Louis, Chief Customer Officer, 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’ income does not stretch to cover everyday expenses.
“As a result, younger relatives are increasingly stepping in to help meet those costs, often at the same time as raising children, paying a mortgage and saving for their own retirement. With many household budgets already stretched across everyday spending and longer-term goals, many may be having to make difficult choices about where to direct their money.
“Too often, conversations about money only start when a problem arises, leaving families attempting to balance difficult financial commitments with little time to prepare. Having earlier family conversations about finances, care needs, housing and inheritance means support can be planned for rather than becoming an unexpected burden.
“Speaking to a financial adviser can also help people understand how their pensions, savings or property wealth could support them in retirement. By putting a plan in place sooner, families can make more informed choices and reduce the likelihood of financial pressures being passed on unexpectedly.”
-ENDS-
Notes to editors
- 1. Canada Life surveyed over 2,000 members of the UK public and 240 financial advisers for the third report in its multi-year Life100+ research programme. The research explores the implications of a longer life expectancy on family wealth transfer, legacy and later life planning. For more information, visit the Life100+ hub: https://www.canadalife.co.uk/life100-hub/
- 2. Sample of 240 advisers includes generalists, wealth managers and equity release advisers
Enquiries:
Press enquiries should be directed to:
Katie Ormrod, Canada Life, +44 7834 740227, katie.ormrod@canadalife.co.uk
About Canada Life:
Canada Life is part of a group of companies controlled by Great-West Lifeco Inc., a Canadian headquartered, international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses. Through its subsidiary companies, Great-West Lifeco operates in Canada, the United States, and Europe. Great-West Lifeco trades on the Toronto Stock Exchange under the ticker symbol GWO and is a member of the Power Corporation group of companies.
Canada Life Limited began operations in the United Kingdom (UK) in 1903 and provides UK individuals and businesses with a range of retirement, investment, insurance and wealth solutions. Canada Life offers individual annuities, pension de-risking solutions, home finance, estate planning and investment options, and workplace protection products.
Canada Life Limited (no.973271) is registered in England and Wales, authorised by the Prudential Regulation Authority, and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Stonehaven UK Limited (no.05487702), trading as Canada Life, is registered in England and Wales and is authorised and regulated by the Financial Conduct Authority. Canada Life International Limited (no.033178C) and CLI Institutional Limited (no.108017C) are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority. Canada Life International Assurance (Ireland) DAC (no. 440141) and Canada Life International Assurance (Ireland) DAC are authorised and regulated by the Central Bank of Ireland.
Canada Life Asset Management Limited, registered in England and Wales with registration no. 3846821. Registered office: Level 37, 22 Bishopsgate, London EC2N 4BQ. Canada Life Asset Management Limited is authorised and regulated by the Financial Conduct Authority.
Please note that while Canada Life Limited and Canada Life Asset Management Limited are regulated as stated above, property management and the provision of commercial mortgages are not regulated activities.