Marsden Building Society reveals hidden costs of retirement

04 November 2026

Retirees are dipping into pensions and savings to support children and grandchildren, with one in three worried about being left financially vulnerable.*

Key findings:

84% of retirees have financially supported an adult child or grandchild in the last 12 months
35% provide financial support regularly
44% have given £2,500 or more over the past year and 25% have given £5,000 or more
35% have taken money from retirement savings or pensions to help family
33% worry helping family could leave them financially vulnerable later in life
71% believe younger generations rely more on family financial support than previous generations

The UK’s retirees are financially supporting their families long after leaving the workplace, with new member research from Marsden Building Society revealing that the ‘Bank of Mum and Dad’ remains open into retirement.

The survey of Marsden Building Society members, who are approaching or in retirement, found that more than eight in ten (84%) have provided financial support to an adult child or grandchild over the past year, while more than one third (35%) say they do so regularly.

The scale of the support is also significant. Almost half (44%) of those helping family members gifted at least £2,500 during the last 12 months, whilst a quarter (25%) gave £5,000 or more.

Over one third (35%) admitted they’ve dipped into retirement savings or pension pots in order to help loved ones. More than a quarter (26%) have even cut back on their own lifestyle to keep supporting family members, with holidays emerging as the most common sacrifice.

The findings suggest there’s a growing number of older Britons acting as a financial safety net for younger generations, with 71% of respondents saying they believe younger people depend more heavily on family financial support than previous generations ever did.

Despite concerns about the long-term impact, many retirees feel compelled to help. One respondent said, "I hadn't foreseen this would be necessary, but the economic situation has meant it's essential to provide him with any hope of making his future a success." Another added, "I’m glad that I’m able to help out but wish that I didn't need to."

One respondent felt that “being old is much more comfortable than being young these days”, whilst another felt it was their duty because “it’s more difficult today to get a foot on the housing ladder."

For some, helping family has simply become part of retirement life. "In the present economic climate, high taxation and exorbitant costs of living, if we can help our family, we will,” one retiree said, whilst several others felt family support is something that’s become normalised.

The research also revealed some anxiety among retirees who are helping loved ones, with one-third (33%) worried that supporting family could leave them financially vulnerable in later life.

Many expressed frustration that working younger adults still require family assistance despite being in employment. As one respondent put it: "If they’re working and still struggling, there’s a problem with the system. But I can't just let them struggle."

Commenting on the findings, Rob Pheasey, Chief Executive at Marsden Building Society, said:

"These findings highlight the increasingly important role that older homeowners are playing in supporting younger generations financially. Whether it's helping children onto the property ladder or providing assistance with rising living costs, many retirees are continuing to share their wealth long after they've stopped working.

"However, more than a third of those helping family members are drawing on retirement savings or pension income to do so. For this reason, it's important that older borrowers have access to flexible lending solutions that enable them to achieve their financial goals without compromising their retirement plans. We continue to see growing demand for later life lending from customers looking to make the most of their home’s equity to help maintain financial stability in retirement."

The findings come as the later life lending market continues to evolve, with growing numbers of borrowers seeking mortgage solutions beyond traditional retirement ages. Marsden Building Society offers a range of retirement interest-only and later life mortgage products designed to provide flexibility for older homeowners, supporting a variety of objectives including family gifting, retirement planning and property purchases.

For more information about Marsden Building Society and its later life lending solutions, visit www.marsdenintermediaries.co.uk.

*Survey of 125 Marsden Building Society members.