Around one in six (16%) adults class themselves as “financial carers” who are helping to manage the money of someone who is older and more vulnerable, a survey has indicated.
Family members typically step in to the role of a financial carer for relatives when they are in their 30s, according to the research for financial services provider L&G (Legal & General).
This can often be due to signs that the loved one is not coping with their finances, missing bills, forgetting accounts, losing track of day-to-day finances or being scammed.
Financial carers may help to manage bills and direct debits, speak to their relative’s bank or pension provider and even act as a “scam detector” by vetting texts and emails to catch fraud attempts, the survey found.
But this sometimes exerts a financial strain on carers, with more than a fifth (22%) saying they have used their own money to cover a relative’s expenses, while 17% have taken time off work and 22% have reduced their hours at work to keep up with caring needs.
The research also identified a knowledge gap, with only a quarter (25%) of financial carers saying they understand how a pension works and 15% saying their lack of knowledge has caused problems when trying to help.
But 24% said the experience of being a financial carer had spurred them to take charge of their own pension planning.
Paula Llewellyn, chief executive of defined contribution (DC) and workplace savings at L&G, said: “Retirement planning is often framed as a numbers game but behind every pension pot is a person juggling real-life pressures, information overload and emotionally charged decisions.
“For many defined contribution savers, retirement planning isn’t just a financial task; it’s a balancing act.
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“And limited knowledge and competing priorities – from childcare to eldercare – can push pensions to the bottom of the to-do list.”
L&G has announced the expansion of its guided retirement planner, which it said will broaden access to help younger DC workplace pension savers to help them understand their retirement savings and bridge the gap between support and advice.
Launched to those at retirement age at the end of 2024, more than 70,000 members aged 55-plus have made a start on the planner.
It identifies people’s priorities and provides insights that they can act on, with the goal of achieving a more sustainable income in retirement, L&G said.
Ms Llewellyn added: “As people’s needs evolve and life stages shift, we continuously adapt our support to remain relevant for every generation.
“That’s why recent rule changes that will allow pension providers to provide targeted support will be a game changer.
“L&G’s guided retirement planner offers personalised content and valuable information to help individuals confidently navigate their long-term savings and retirement planning. We’re focused on helping our 5.7 million members achieve better outcomes to ensure a sustainable income in retirement.”
The survey was carried out by Opinium in July and August among 4,000 people across the UK.
