Thirty-eight per cent of British millennials are relying on money from their parents to help fund their own retirement pot, Moneyfarm has revealed.

The digital wealth manager’s research found that a further 56% would go a step further and insisted the inheritance from their parents would be their only source of income when they retire.

Just under one in five (19%) are banking on a financial boost when their parents pass away, while 4% are already mentally spending their parents’ pensions and savings.

Moneyfarm also found that two in five (40%) millennials said they would struggle to retire without money from their parents.

Furthermore, 29% think they will be forced to work part time past retirement age, while 16% said they will have to continue working full time.

Although employees are now legally obliged to contribute to an employee pension scheme and following the introduction of auto-enrolments to workplace pension, 69% of working Brits are worried about how they are going to afford retirement.

Although Moneyfarm's research revealed that the nation worries about its lack of financial security 17 times a month, 18 to 29 year-olds said they would like to retire by 65 years old, while those aged 30 to 44 believe they will be able to stop working at 67.

This is despite the state pension age being expected to rise to 68 by 2037.

Pensions technical expert at Moneyfarm, Carina Chambers, said: "In today’s economic climate, it’s clear to see that an increasing number of millennials are turning to their parents’ savings and pension funds as a crucial resource for their own retirement planning.

"This growing reliance underscores the economic hurdles faced by younger generations such as escalating living expenses - including very high childcare costs, inflation and a competitive housing market."

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