A fifth of over-50s have been financially supporting their adult children since the pandemic began, research by Saga suggests.

A poll by the company indicates that Covid-19 has increased pressure on the so-called Bank of Mum & Dad and Gran & Grandad.

The same proportion of respondents expect to continue with this support for the next 12 months amid continued financial uncertainty for families. 

Saga’s survey suggests that 68 per cent of over-55s have drawn on their savings during the pandemic, while others have altered their inheritance plans or accessed their pension earlier than anticipated to cope with financial pressures. 

Nearly one in ten of those questioned have gifted money that they had intended to leave as part of their inheritance.

Common reasons for supporting family include job losses for 17 per cent of respondents, furlough for 25 per cent, lack of savings for 38 per cent and debt problems for 18 per cent. 

Following the temporary increase in the stamp duty threshold, 11 per cent also say that helping children get onto the property ladder is a priority.

Almost 70 per cent of parents say they have used their own savings for this, while 35 per cent have cut back on spending on themselves to help their family.

Attitudes towards leaving an inheritance have shifted as a result of more immediate financial demands.

While 55 per cent of parents still believe it is important to leave an inheritance, 20 per cent say the pandemic has encouraged them to think more flexibly. 

Just over a third of parents say they would rather see their children benefiting from their inheritance while they are still alive. 

As families look for ways to support each other financially, 7 per cent of respondents say they have considered equity release as a means to do so. 

Saga’s data suggests the average value being withdrawn to give to family members has increased by 20 per cent since 2019, from £35,000 to £42,000.

Meanwhile, 14 per cent of parents say they are considering downsizing to a smaller home, while 8 per cent will be making early drawdowns on their pensions and 4 per cent will be cashing in stocks and shares or other investments to release money for their children.

Saga Equity Release Services head Alex Edmans says: “The pandemic has brought about a whole host of new financial pressures for families. 

“It’s only natural then, for parents who may be more secure than their children to want to offer their support through these challenging times. “Many are now increasingly turning to their own savings, thinking more flexibly about their inheritance plans or considering benefitting from the equity in their home.

“However, it’s vitally important that parents seek advice on the best route forward before committing to accessing their pensions early, gift money or using equity release – what is right for one family may not be appropriate for everyone. 

“Decisions should be made based on individual needs and circumstances, to avoid jeopardising their financial future.”