Britons are likely to see pension incomes “stretched even further” over the next 10 years, according to experts.
More than one million families in the UK are projected to contain two retired generations by 2034, research by St. James Place has found.
This represents a 32 per cent increase on the 813,000 multi-retiree families that currently reside in the UK.
Experts are urging families to review their retirement plans to avoid seeing their incomes slashed significantly.
Some 55 per cent of future retirees expect to provide financial support in retirement to other generations in their families.
In comparison, just over a third (37 per cent) of current retirees expect to do the same for their loved ones.
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More families will have multiple generations of retirees in the next 10 years
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Around 14 per cent of future retirees plan to work in retirement to supplement their pension income.
Furthermore, 12 per cent are planning to delay their retirement for a couple of years to build a bigger pot.
By 2029, 963,000 families will contain more than one retired generation which is an 18 per cent rise from today’s figures.
Nearly 1.4 million families are expected to contain more than one retired generation by 2044, St. James Place found.
Claire Trott, the divisional director for retirement and holistic planning at the financial advice company, emphasised the “pressure” that will hit thousands of households in the years to come.
She explained: “With people living longer, retirement provision more and more becoming the responsibility of the individual and the economic landscape evolving, the way we need to think about planning for the future has fundamentally shifted.
“The next generation of retirees can’t expect to follow the same path as those currently in retirement.
“There is a lot of pressure on people’s finances currently, and so building sufficient funds for your future whilst also supporting other generations may not be the priority and can feel daunting.”
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Households are being told to seek professional advice
GETTYThe finance expert reminded pension savers of the importance of “seeking professional advice”.
Tott added: “In addition to this, future retirees are increasingly expecting to financially support others once retired, and retirement income is having to stretch in multiple directions. In order to do this, our approach to retirement planning must change.
“Putting in place the right plans at an early stage will allow greater opportunity to build wealth over time and leave behind as much as possible when you’re gone, without making unnecessary sacrifices along the way.
“Seeking professional advice can help you navigate these plans, giving you and your loved ones more security in future.”