BANK OF GRAN AND GRANDAD TO THE RESCUE

  • More than one in three over-65s have paid off debts for children or teenage grandchildren, MetLife research shows
  • Retirement income solutions need to be more flexible
  • (and check out our Family Trust Solution which comes at the problem from an entirely different angle) 

More than one in three over-65s have paid off debts of more than £2,000 for children or teenage grandchildren, research* from MetLife shows.

Its nationwide study shows 35% of over-65s have helped out their adult children or teenage grandchildren highlighting the continuing pressures on retirement income.

The research found 17% of the over-45s have helped out their teenage children but the proportion doubles when it comes to the over-65s who are handling requests for help from their adult children as well as from teenage grandchildren.

Among the 55 to 64-year-old age group the proportion who have bailed out children or teenage grandchildren for £2,000 or more was 26%, the study shows.

MetLife believe the research underlines the financial demands on retired people and the need for flexible retirement income solutions which can adapt to changing circumstances.

Dominic Grinstead, Managing Director, UK, MetLife said: “Helping out family is clearly important to many parents and grandparents and it appears that the requests for help don’t necessarily stop when you are retired.

“The worry is that grandparents are having to make sacrifices to help out and risking their own financial security to enable children and grandchildren to clear debts.

“Retirement income solutions need to be flexible enough to enable savers to cope with emergencies or financial shocks because it is guaranteed there will be surprises once you retire.”

MetLife passed the £4 billion assets under management milestone a year after hitting the £3 billion mark underlining the continued strong growth in the unit-linked guarantees market.

Continuing expansion is being driven by the success of its new generation of guaranteed products offering market-leading deferred income rates of 4.25% and shorter capital guarantee terms.

MetLife has seen rapid growth underpinned by its Managed Wealth Portfolios which have grown to more than £1.3 billion under management in just 12 months after launching the new funds in partnership with world-leading asset manager BlackRock.