Pensions

A fifth of parents raid pension pots to help children, says Prudential | Business

As millennials struggle with unattainable property prices, parents are bridging the gap with larger financial contributions than everJoe Giddens / PA

One in five parents have withdrawn money from their retirement fund to help their cash-strapped offspring, according to research that has triggered alarm from pensions experts.

A survey by Prudential found that 19 per cent of parents either took money from their pension pot or sacrificed savings for old age, while 10 per cent said that helping their children had left them short of money.

Experts said that those involved, likely to be in their late forties or early fifties, were at the greatest risk of a shortfall in their pension savings, as many had missed out on final salary schemes and auto-enrolled in a pension later in life.

“People aged between 45 and 55 are a particular problem because they may not have the…

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