Over 50s dubbed UK’s ‘generous generation’

Two fifths of over-50s have raided their own savings to help their children – with some handing over more than £10,000.

Almost a third have given their children up to £5,000, while one in ten have sacrificed over £10,000 from their own savings, according to new research by Unity Mutual.

Every month, 11 per cent of over-50s spend more than £500 helping their children, while 30 per cent spend up to £100 a month.

This comes as a separate report by Savills last week revealed that over 65s hold a record-high £2.6trillion worth of net housing wealth, while many younger people are struggling to get on the housing ladder. 

Cash handouts are not the only way the over 50s provide support to younger family members, however. 

The research finds they are also generous with their time, with one in ten providing childcare full-time.

Fifteen per cent of over 50s help out with childcare for up to 30 hours per week, and 25 per cent provide up to 15 hours a week.

For those over-50s still working, 42 per cent sacrifice up to three weeks of annual leave to help with childcare.

A similar proportion admit they have altered their retirement plans in order to help their children, while two thirds say they would sacrifice their own financial stability for them.

‘I went part-time to look after the grandchildren’

Jill Haigh, 58, sacrificed her financial security to provide childcare for her grandkids.

Jill gave up work in 2010 for twelve months to care for her first grandson full-time, as her daughter returned to work following maternity leave.

It was a period that saw her pay no National Insurance contributions as a result of having no income. Not having enough years of NI contributions can affect the amount of state pension someone is entitled to. 

Jill Haigh, 58 (pictured right with her daughter and grandchild) sacrificed her own financial security to provide childcare

Then in 2019 Jill gave up work again, this time to care for both her elderly mother and her two youngest grandchildren at the same time.

She adds: ‘I chose to work part-time so that I was able to help my daughter and her husband with childcare. Most of my annual leave would be taken up with helping the grandchildren during the holidays.’

As a result, Jill – at the age of 58 – finds herself with few savings and a gap of several years in her pension contributions.

Concerns about her finances have taken a heavy toll on Jill, who says she says she is suffering with anxiety, stress and recurring bouts of depression. 

‘I often feel a sense of hopelessness and that I have failed,’ she says. ‘This is certainly not the life I pictured for myself. 

‘At this point, I had hoped I would own my home, have savings in the bank, enjoy regular nice holidays and have peace of mind knowing I had financial security’

‘Heading towards retirement fills me with dread’, she continues. ‘I worry constantly, even waking during the night thinking “How will I manage when I retire?” and “How can I possibly contribute financially as I do now when drawing upon state pension?”

Ben Pears, insurance director from Unity Mutual said: ‘What our landmark study into the over 50s reveals for the first time is not only the extent of long-term support they offer their children, but how entwined their finances are with their offspring.

‘We see that millions based on our research are giving regular handouts from their own savings – and from the countless hours of childcare they provide.’

The survey of 2,000 UK parents over 50 years of age also discovered that one in four don’t think they will ever stop supporting their children.

Over half say they didn’t expect to be still contributing to their children at this age with two fifths fearing their children will never be able to stand on their own feet.

Do you make financial contributions to help your grown-up children? Contact helen.kirrane@thisismoney.co.uk