The cost of living crisis is impacting family members’ ability to financially support their relatives, both now and in the future, according to research from Canada Life.
Among those who already financially support their relatives, or could do so, 48% say the next 12 months will make it harder for them to do this, or that they will be unable to support them anymore.
At the same time, relatives are feeling increasingly uneasy about asking for financial assistance. 74% say they wouldn’t feel comfortable asking for financial support from family or friends.
When looking ahead at family members’ ability to support their relatives in the future, 58% of adults with living parents say they would find it difficult to offer financial support should their parents need it. 47% say the same for their adult children, and 55% for their adult grandchildren.
The findings also reveal the emotional impact the rising cost of living is having on households across the UK. Over half of UK adults (54%) are not only concerned about the impact the rising cost of living will have on themselves, but there are also growing concerns about the known effect it will have on the wider family, including their children (53%), parents (46%) or grandparents (45%).
Andrew Tully, technical director at Canada Life, said: “Financial support from family members has long been a helping hand for many, including the Bank of Mum and Dad which has played a significant role. However, the cost of living crisis means we may well start to see a reverse in this trend. As inflation continues to soar, families are being forced to make tough financial decisions that could impact themselves and loved ones.
“For those wanting to gift money and worried about the impact this could have on their future finances, speaking with an independent adviser is a sensible place to start. These professionals are on hand to help navigate difficult conversations and provide you with a holistic view of your finances over the short, medium and long-term, ensuring you feel comfortable and confident about the choices you make.”
