More than one in three people (34%) who plan to retire this year are financially supporting family members.

Contributions average nearly £260 a month, according to new research from Prudential.

The findings are part of Prudential's annual research into the finances, plans, and aspirations of people planning to retire in the year ahead.

Prudential says this year's retirees – Class of 2017 – is its 10th set of data providing insight into the post-financial crisis retirement landscape.

The research found that financial dependents of this year's retirees are most likely to be their children or their children's partners (45%), followed by their grandchildren and their partners (24%), and their parents and grandparents making up nine and five per cent respectively.

Kirsty Anderson, a retirement income expert at Prudential, said: "With life expectancy increasing rapidly it is not unreasonable to expect the members of the 'Class of 2017' to be looking forward to a retirement that will last 20 years.

"But for those providing financial support to their dependants, it is likely to cost an average of £62,000 over the course of their retirement – accounting for a significant proportion of their pension pot and impacting the income they can expect to live on."

The most common reasons for providing financial support, including help covering everyday living costs or paying some or all the regular household bills.

One in five retirees questioned paid for one-off large purchases, such as a holiday or new car, and 11% paid for non-essential costs, such as club memberships and subscriptions.

Despite the squeeze in their income, around one third (34%) of 2017 retirees questioned, said they plan to leave an inheritance – up from 28% in last year's research.

The estimated average amount they plan to leave is just over £173,000.

First published 23.05.2017

Lindsay.sharman@wilmingtonplc.com