One in 10 of Gen X spending state pension equivalent on elderly relative care

One in 10 (11%) of Gen Xers are financially supporting elderly relatives with care costs, paying on average more than the yearly state pension, Just Group has found.

In the firm’s ‘generation anxiety’ research, Just Group revealed that these people, who were born between 1965 and 1980, are spending an average of £237.50 a week on supporting elderly relatives with care costs. This could include care home fees, visits from a home carer, weekly shopping or funding home improvements.

Over the course of a year, the figure equates to £12,350, which is around £800 more than a full new state pension will pay out in a year to an individual from April this year (£11,542).

When asked how they felt about contributing to their parents or relatives’ care costs, the majority of those surveyed answered that they felt poorer (54%) and more tired (53%) as a result.

A further two in five (39%) said they felt unprepared, with a similar proportion saying they were stressed (42%).

Group communications director at Just Group, Stephen Lowe, said: "When elderly parents or loved ones begin to need formal caring arrangements, it can be a difficult and emotional time. It is little surprise that Gen X feel that contributing financially to their parents or elderly relatives care is the right thing to do but it is clear that, for many, the cost of this additional support is adding to the already significant pressures squeezing this generation.

"The costs of contributing towards the care of elderly family members are not trivial – either in financial or emotional terms. Gen X is spending, on average, the equivalent of more than a full state pension every year to provide this financial support.

"The money they are spending is unlikely to be surplus to requirements and there will be competing demands from saving into their pension pots to paying off their mortgage, from helping their children to supporting their elderly parents. It’s no wonder many seem resigned to working beyond the state pension age."

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