More than a third of planned retirees still financially support their family to the tune of nearly £260 a month

These expenses are likely to cost retirees an average of £62,000 over the course of their retirement

The financial contributions represent a squeeze on retirement incomes at a time when inflation is rising (Getty)

More than a third of those planning to retire this year are still providing their families with financial support to the tune of nearly £260 a month, according to new research.

The report, published by life insurance company Prudential on Wednesday, found that children and their partners are most likely to be dependent on future retirees with 45 per cent receiving their help, followed by their grandchildren and their partners.

Surprisingly, planned retirees also provide for their parents and even their grandparents with the groups accounting for 9 and 5 per cent of their financial dependents respectively.

On average, those retirees who provide financial support give money to more than four people, most commonly to help cover everyday living costs and pay some or all of their regular household bills.

Kirsty Anderson, a retirement income expert at Prudential, said these expenses are likely to cost retirees an average of £62,000 over the course of their retirement, accounting for a significant proportion of their pension pot and impacting their income at a time of rising inflation.

“For most people who are still in work it is never too late to make a difference to the quality of retirement you can look forward to. Saving as much as possible as early as possible in your working life should give you the best possible opportunity to build a substantial pot to support you and your family in the future,” she said.

The finding comes after Prudential, in an analysis published earlier this year, found that nearly one in seven people retiring this year made no financial provision for their retirement, and more than one in ten will be either totally or partially dependent on the state pension when they stop working.

The analysis showed that thousands will enter into retirement this year with an income that is up to £1,400 a year below the Joseph Rowntree Foundation’s minimum income standard for a single pensioner.