‘Bank of son and daughter’ fear over retirement readiness

Almost one in six parents worry they may have to turn to their children for financial support in retirement, research from MetLife shows.

Money from GrandmaA poll of 1,141 over-40s found 16 per cent of those with children are concerned that they will need to ask children for financial support in retirement because they will not have saved enough by the time they retire.

The research found 45 per cent of over-40s worry about the financial risks they have to take to guarantee an income for life when they stop work and 75 per cent say having a guaranteed level of income in retirement is important to them. More than half of those polled – 56 per cent – believe they are on track with their retirement savings, rising to 76 per cent among the over-55s. 30 per cent of over-40s admit they are behind on their retirement saving.

MetLife UK wealth management director Simon Massey says: “Parents will have worked hard to support their children so perhaps they should feel entitled to rely on them if they need financial support in retirement.

“However, it is a bit of a role reversal when it’s retired parents banking on their children for money. It will also have an impact on how much the children can save for their own retirement which in turn can cause problems.

“Planning for the long-term and reducing the risk of running out of money in retirement is one of the key challenges for savers. Guarantees can help people approach their retirement with greater certainty and confidence and a Guaranteed Drawdown solution provides the peace of mind that comes with a guaranteed level of income for life in retirement while retaining full access to your money. This can help mitigate the risk of needing to call on children’s help”