One in five over-50s workers are having to work for longer and sacrifice some of their retirement saving plans to meet the financial needs of their parents and children, according to a new report from Aviva.

The insurer has said that almost two in five (36 per cent) over-50s workers with dependents say they will retire later than they expected because their children are still financially dependent on them. And 32 per cent of those with dependents have told Aviva that their adult children’s financial needs are the only reason they’re still working.

The need to help their parents financially is also prolonging the working lives of many over-50s. More than one in ten over-50s workers with financial dependents say the only reason they are still working is to help support their own parents or their partners’ parents with matters such as healthcare.

In addition, almost a quarter of over-50s with financial dependents say they have sacrificed their ability to save for a more comfortable retirement to support their adult children, while 12 per cent have stopped saving completely to support children and parents who rely on their financial support.

Using government statistics, Aviva has extrapolated its research to estimate that some 1.9 million over-50 workers are juggling the financial needs of their parents and children with their own retirement prospects.

Aviva also noted that 62 per cent of over-50s are now planning to retire later than they planned to ten years ago. Forty three per cent of those retiring later than planned blame not having enough pension savings.

Aviva managing director of savings and retirement Lindsey Rix said: “With children flying the nest later and later, many over-50s are shouldering the responsibility of putting their families’ financial needs ahead of their own for a prolonged period of time.

“As a result, many are facing a dilemma over delaying their retirement, while others are struggling to maintain their retirement savings habits. Workers of this age are in a key stage of retirement planning and would benefit from saving as much as possible to ensure a comfortable retirement, but are facing unprecedented hurdles to do so. Employers and government, as well as individuals, have important roles in helping to make saving a reality.”

Rix added that better understanding of the issues facing the age group would help employers and government to meet over-50s’ needs.

However, not all over-50s are still working only because of their own or their dependents’ financial needs. Aviva’s research reveals that two in five over-50s are motivated to stay in work by job satisfaction and fulfilment rather than financial reasons – rising to 53 per cent of 65-69s and 66 per cent of over-70s. Among those retiring later, 34 per cent are doing so because they enjoy the mental stimulation of their job.

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