Britain’s over 50s are putting money aside each month for both themselves and their loved ones, according to new research from Saga Personal Finance.

Around 11 million over 50s say they save regularly and while they put away £165 a month on average, one in four save more than £250 a month. Both men and women are keen savers but on average, men over 50 save £178 each month, whereas women save £145.

On average, grandparents aged over 50 say they save £56 a month for their grandchildren, the equivalent of almost £700 a year.

Grandparents say they are saving for their grandchildren’s university fees (39%), school supplies, such as laptops or university books (31%), and a deposit for their first house or flat (18%).

When it comes to saving for themselves, the over 50s are putting money away for a nice holiday (59%) or to help fund their retirement (34%). However, men appear to have a different plan for their savings, as men are most likely to want to use the money to buy a new car (men 23% vs women 14%), whereas women are hoping to use it to buy some new garden furniture or to improve their home (women 26% vs men 20%).

Jeff Bromage, chief operating officer at Saga Personal Finance, said: “The over 50s are savvy savers and don’t like to live beyond their means. And it appears they’re not just worried about their own financial welfare as our research shows their grandchildren’s financial future is also at the forefront of their minds.

“Our research shows they really are the generous generation and it’s nice to see that so many people are in a position to be able to help their grandchildren financially, whether that’s contributing to university fees, paying for driving lessons or helping them get on the property ladder. However, grandparents are wise to give their grandchildren money little and often rather than giving them a large lump sum as this can reduce their inheritance tax liability.”