Pensioners Spending More For Their Grandkids’ Needs
According to pensions think-tank Investec, the elderly are spending more gifting money from their cashed-in pensions to their grandkids or millennial grandchildren, the latter receiving funding for education or daily needs as they attend secondary education.
However, about one out of five retirees gifting money to their children or grandchildren find themselves giving too much. Many cut back on holidays and adjust their lifestyles to give to their grandchildren.
Some even retire later to provide for their young grandchildren or grandkids attending university or college.
Sacrificing a Better Quality Of Life
Many elders who spend too much of their pensions on grandkids sacrifice much of the quality of their lives according to Lead Financial Planner at Investec Chris Aitken.
Aitken added that the new pensions freedoms allow elders to “gift too much” to their grandchildren without thinking of the long term impacts.
Cashing in pensions is big trouble for plenty of retirees misinformed about the corresponding taxes when claiming early. Plenty have lost almost half of their pensions to taxes.
However, the alternative of hiring the expensive services of financial managers is no better. Some pension service providers require members to work with financial managers, which many had outright refused.