Last Updated on February 6, 2024
New research from retirement specialist Just Group has revealed the financial responsibilities facing Generation X.
The latest data from Just Group has shed light on the contribution Generation X is making towards the care of older relatives – creating a significant financial and emotional burden on this generation, the organisation has argued.
The data has revealed that over one in 10 (11%) of Generation X are contributing to financial support for the care of their older relatives; covering the costs of things like contributions to care home fees, visits from a home carer, weekly shopping or funding home improvements.
Those providing support estimated that they were spending an average of £237.50 a week – or £12,350 a year, around £800 more than the full new State Pension will be worth from April 2024 (£11,542).
Asked how they felt about contributing to their parents or relatives’ care costs, the majority answered that they felt poorer (54%) and more tired (53%) as a result. A further four in 10 felt unprepared (39%) and a similar proportion were stressed (42%).
Stephen Lowe, Group Communications Director at Just Group, said the data accentuates the financial demands placed on this group, '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 Generation X feel that contributing financially to their parents or older 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. Generation 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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