The increase in the cost of living is being felt by almost every household and the survey found that around half (53 per cent) of advisers report that clients are making adjustments to their finances as a result.
However, the survey of more than 200 financial advisers, found that one of the main requests for a quarter (25 per cent) of advisers was from clients who want to release funds to help their adult children cope with the rising cost of living.
The top request, in the context of the rising cost of living, was to help make sure investments kept up with inflation, according to two fifths (40 per cent) of advisers.
In terms of accessing additional money, over half (55 per cent) have clients who are tapping into their pension savings to boost their disposable income.
Of this, around a third (36 per cent) increaseed the amount of drawdown cash they took, a third (33 per cent) are taking an additional lump sum for themselves and about a fifth (18 per cent) are taking a lump sum specifically to help their children.
Clare Moffat, pensions expert at Royal London, said: “The cost of living crisis means many grown up children are relying on a financial leg up from their parents to cope with rising costs.
“While it’s tempting to use retirement cash to help family, it should come with a note of caution.”
Moffat said there’s “a real danger” that it will compromise parents’ long term retirement security and impact their overall retirement - ultimately spending more now will mean spending less later.
“For today’s young adults, long-term financial planning looks very different to the journey their parents took,” she said.
“Reaching key financial milestones, like buying a house, involves a much longer wait than previous generations. While it’s natural for parents to help, the right balance needs to be struck.
“Dipping into your pension pot and withdrawing funds early can have a dramatic impact on your overall retirement. It can also make it harder to build a pension pot back up in future.”
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