Nearly a quarter (24 per cent) of parents have already accessed, or are planning to use, retirement funds early to help cope with the rising cost of living, according to research from Killik & Co.

The survey found that 8 per cent of parents have already dipped into savings for later life to support their children, prompting concerns that some savers could be left short of money in retirement as a result.

According to the research, 40 per cent of parents have found the cost-of-living crisis worse than expected, with rising energy bills the top concern, followed by food bills, fuel, housing costs and education.

Commenting on the findings, Killik & Co head of financial planning, Will Stevens, explained that many families have had to make "tough financial choices" amid the unprecedented economic period, including using long-term savings to make up for financial shortfalls.

However, Stevens warned that while some parents will have no choice but to access their pension savings early or reduce contributions, this could risk significantly impacting the lifestyle they can afford in the future.

“Accessing or making changes to your pension is a major financial decision, so it’s important seek expert advice, if at all possible," he stated.

“A good financial planner can provide clarity and advise on the best steps to take if circumstances change, for better longer-term outcomes.

"This includes helping you balance where to draw your funds from, whether pensions or other savings, any tax implications – something that cash flow modelling can play a key role in - and all the options available to you.”

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