Savings suffer as families help struggling relatives, says new research

The number of people saving for their future has improved fractionally on last year – but there are still almost 15 million who say they are not putting anything away, according to a new survey.

However the report, for Scottish Widows (part of the Lloyds Banking Group), also suggests that families are increasingly using their savings to support other family members.  Some 40% - up from 30% last year - said this amounted to "substantial amounts of money".

 The average amount given or loaned to children has risen from £13,300 to £14,865; worryingly, the main reason given by those surveyed was to meet everyday living costs.

Loans and gifts from parents to children were not the only family financial assistance, though.  The research also found that savings were flowing from grandparents to grandchildren, children with better jobs were lending money to their parents, and siblings were supporting each other.  These loans and gifts tended to range from about £3,500 to £4,500.

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