According to research from Canada Life, which surveyed around 2,000 adults, found that almost half of those already financially supporting family members, 48 per cent, said they would struggle to continue doing so in the next 12 months.
Relatives were also feeling increasingly uneasy about asking for financial assistance themselves. Around three quarters, 74 per cent, said they would not feel comfortable asking for financial support from family or friends.
When looking ahead, almost three-fifths, 58 per cent, of adults with living parents said they would find it difficult to offer financial support should their parents need it.
Nearly half, 47 per cent, said the same for their adult children, and over half, 55 per cent, said that same for their adult grandchildren.
Fears over rising cost of living and other family members
The findings also revealed the emotional impact the rising cost of living is having on households across the UK.
Over half of UK adults, 54 per cent, were not only concerned about the impact the rising cost of living will have on themselves, but there were also growing concerns about the known effect it will have on the wider family.
Around 53 per cent said they were concerned about the impact the cost of living crisis would have on their children, 46 per cent on their parents and 45 per cent expressed concern for grandparents.
Andrew Tully, technical director at Canada Life, said that financial support from family members had been a “helping hand for many”, pointing to the Bank of Mum and Dad as an example.
However, he said that cost of living crisis could see a “reverse in this trend” as inflation meant families were having to make more difficult financial decisions.
Tully continued: “For those wanting to gift money and worried about the impact this could have on their future finances, speaking with an independent adviser is a sensible place to start.
“These professionals are on hand to help navigate difficult conversations and provide you with a holistic view of your finances over the short, medium and long-term, ensuring you feel comfortable and confident about the choices you make.”
