Parents risk running out of cash in retirement as they dip into pension pots to help children onto the housing ladder.
The Bank of Mum and Dad will hand out a hefty £8.3billion in 2019, at an average of £24,100, according to research.
Parents and grandparents are drawing on a wide range of sources to financially support their family with house deposits. While just over half have the cash to help out, the remainder are turning to their pension savings, cashing in the lump sum from their pots and dipping into pensions via a drawdown plan.
Those who have already retired are using their pension income to help loved ones with their home ownership ambitions. Digging even deeper into retirement savings is leading some into an uncertain older age.
More than a quarter of parents aged over 55 are not confident they will have enough to last throughout their retirement.
The study found that 12.5% have had to accept a lower standard of living and 5% delayed retirement to keep earning.
Chris Knight, chief executive at Legal & General retail retirement, which carried out the research, said: “Parents and grandparents are giving generously as part of the Bank of Mum and Dad.
“Many are using their pensions to help out and unfortunately this could be leaving some facing a poorer retirement.”
