• 38% of savers have financially supported family members due to the cost-of-living crisis
• Nearly 50% of pensioners aged 70-74 have supported family members
• Savers also adjusting spending in response to inflationary pressures
• Survey of 2000+ savers conducted by Paragon Bank

Nearly 40% of savers are financially supporting members of their family due to the cost-of-living crisis, new research conducted by Paragon Bank has found.

Over a fifth (21%) have provided support to their children, while a further 17% have done so for grandchildren and other family members.

Nearly half of pensioners aged 70-74 are mostly likely to have helped family, with 29% having provided support to their children and 11% to their grandchildren – 7% supporting other family members.

Meanwhile, 43% of those aged 75-79 have supported family members, with 46% of those 80+ also doing so – compared with just 24% of those aged 18-34, and 21% of 35-54 year olds.

The survey of over 2000 Paragon customers provides new insight into the pressures facing households as food and energy price increases drive inflation to the highest level in decades.

Commenting on the findings Paragon Bank Director of Savings Derek Sprawling said:

“As food and energy prices continue to drive up inflation, many parents and grandparents are increasingly stepping up in to support family members.

“It is striking how it is those over 70 providing the greatest level of support to family members. This generational divide will provide concern about the level of savings that can held by those under 55 and how they can improve their financial resilience 

“Savers should consider their spending plans for the time ahead and select the right financial tools for their situation, to grow and protect the value of their savings and to help finance big purchases.”

Concurrent to the support savers are providing to family members, they are also cutting down on expenses and revising their spending habits.

Over four in 10 (42%) of savers said they have spent less on eating out over the last six months, with 31% spending less on take-aways – alongside 36% of savers cutting back on entertainment.

Major purchases have also been impacted by the current financial pressures - 13% of those surveyed have delayed buying a new car, and 15% have put off household renovations.

Discussing the new data on how savers are responding to the cost-of-living crisis, Derek Sprawling said:

“The changes in spending habits, both large and small, is an indication of savers’ adjusting to the wider economy and their making proactive decisions to manage their finances as a result of rising prices.”

Notes to editors:

Research conducted with over 2,000 Paragon Bank Savings customers in June 2022.

Paragon Bank PLC a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £13 billion of loan assets under management and manages over 450,000 customer accounts.

Paragon Bank PLC is authorised and regulated by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands, B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551.