Almost 10% of people aged 55 and over see family support as a way to fund their retirement, according to new research from AXA Wealth.
The research, released today, highlighted how the babyboomer generation are saving for retirement in a variety of different ways, as people try to adapt in a climate of low interest rates and longer life expectancies. Nine percent see family support as a means of retirement income, prompting concerns over a so-called “golden baby boomer generation”.
It was revealed that less than a third (29%) of over 55s are planning to fund their retirement with personal pensions, compared to more than three quarters (78%) who cite the state pension as playing a significant part in the way they intend to fund their retirement. This has raised concerns in some quarters, as many people may think that the state pension is larger than it really is.
Another changing trend amongst this generation is the old adage, “my property is my pension”. The survey found that just 9% babyboomers cited downsizing the family home as a means of generating retirement income.
Nick Elphick, managing director at AXA Wealth specialist products, said:
“How we fund retirement is an issue that is far too important to ignore. We are already seeing the rise of the boomerang generation – young adults who feel they have no option but to return home or rely on their parents for financial assistance. Are we about to see the rise of a ‘golden boomerang generation’, where older people seek financial support from their children in retirement?
“The reliance on the State pension is concerning given that the introduction of the flat rate state pension in 2016 is likely to see many people receiving less than they would under the current system. It also worries me that too many people are under-prepared in providing for their retirement and so few are considering a personal pension.”