Over 50s dubbed UK’s ‘generous generation’

Two-fifths of those over 50 have plundered their own savings to help their children – some handed over £10,000.

Nearly a third have given their children up to £5,000, while one in 10 has sacrificed more than £10,000 of their own savings, according to new research from Unity Mutual.

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

This is because a separate report from Savills last week revealed that the over 65s have a record £2.6 trillion in net home wealth, while many younger people are struggling to get up the housing ladder.

However, handing out money is not the only way the over-50s support younger family members.

The survey shows that they are also generous with their time: one in ten provides full-time childcare.

Fifteen percent of the over-50s help with childcare for up to 30 hours a week and 25 percent for up to 15 hours a week.

Of those over 50 who are still working, 42 percent sacrifice up to three weeks of annual leave to help with childcare.

A similar percentage admit they have changed their retirement plans to help their children, while two-thirds say they would sacrifice their own financial stability for them.

‘I went part-time to babysit the grandchildren’

Jill Haigh, 58, sacrificed her financial security to care for her grandchildren.

Jill left work for 12 months in 2010 to care for her first grandson full-time when her daughter returned to work after maternity leave.

It was a period in which she did not pay national insurance contributions because she had no income. If someone does not have enough years of NI contributions, this can affect the amount of state pension to which someone is entitled.

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

She adds, “I chose to work part-time so that I could help my daughter and her husband take care of the children. Most of my annual leave would be spent helping the grandchildren during the holidays.’

As a result, Jill – at age 58 – has little savings and a gap of several years in her pension contributions.

Concerns about her finances have taken a toll on Jill, who says she suffers from anxiety, stress and recurring depression.

“I often have a sense of hopelessness and that I’ve failed,” she says. This is definitely not the life I envisioned.

“At this point, I would have hoped that I would have my own house, have savings in the bank, have fun vacations on a regular basis, and have peace of mind knowing I had financial security”

“The road to retirement fills me with dread,” she continues. “I worry constantly, even when I wake up at night and think, ‘How will I manage when I retire?’ and “How on earth can I contribute financially as I do now when taking the state pension?”

Ben Pears, Insurance Director of Unity Mutual said: ‘What our pioneering study of over 50s reveals for the first time is not only the level of long-term support they provide their children, but also how intertwined their finances are with their children’s.

“Based on our research, we see millions regularly giving alms from their own savings — and from the countless hours of childcare they provide.”

The survey of 2,000 British parents over the age of 50 also found that one in four believe they will never stop supporting their children.

More than half say they do not expect to be able to contribute to their children at this age, and two-fifths are afraid that their children will never be able to stand on their own two feet.

Are you making a financial contribution to help your adult children? Please contact helen.kirrane@thisismoney.co.uk