Bank of mum and dad sees average parents spending £18000 on supporting

The bank of mum and dad sees average parents spending £18,000 on supporting grown up children.Around 17 percent of over-55s who provide financial help to loved ones will be, if they are not already, worse off, Legal & General and the Centre for Economics and Business Research (CEBR) found.One in 10 said they felt less financially secure and 4 percent said they had postponed retirement after supporting family or friends onto the housing ladder.The research, which surveyed more than 2000 lenders, also found that women were found to be more likely than men to have accepted a lower standard of living after providing financial support.–– ADVERTISEMENT ––People approaching retirement aged 55 to 64 were also particularly likely to be feeling the strain – with money being siphoned from places such as pension pots, downsizing to smaller homes and equity release to help younger generations.Legal & General found that, based on the average contribution by the Bank of Mum and Dad, an over-55 household could expect to be £18,000 worse off on average after providing financial support.The research also found that the “bank” lenders were unlikely to take advice in regard to the impact their giving may have on their own financial future.Before gifting money to help family or friends onto the housing ladder, more than 77 percent did not speak to a professional adviser or even seek information online.Chris Knight, chief executive officer at Legal & General retail retirement, said: “Parents and grandparents across the UK are often digging deep into their pension pots to support loved ones, balancing the housing needs of their children and grandchildren with their own retirement goals.”Worryingly, in the majority of cases, these individuals aren’t taking advice before they ‘lend’.”He said the financial services sector should re-think how it communicates with people and continued: “It means getting people thinking about retirement income earlier, helping them build their retirement plan and laying out all the options available to them.”If we can do this, we can help people to be this generous without leaving themselves short – helping their family onto the property ladder, but also ensuring they have the best retirement they can.” Want the best of The Telegraph direct to your email and WhatsApp? Sign up to our free twice-daily  Front Page newsletter and new  audio briefings.

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