More than two in five retired people worry that giving financial support to their children and grandchildren could leave them short of money in later life, according to research by Investec Save.

The survey of 1,000 retired people found that 41% fear excessive gifting could leave them financially stretched if they live into their 80s and 90s, amid growing concerns about the sustainability of the 'Bank of Mum and Dad'. For one in ten, the concern is constant, while 31% say it occasionally crosses their mind.

More than one in 10 (11%) said their children and grandchildren had become more financially dependent on them over the past five years, although 22% said younger family members had become more independent.

The concerns are reflected in attitudes towards helping relatives onto the property ladder. Almost three-quarters (72%) of retired people have ruled out providing financial assistance with house purchases and have not done so in the past five years. Just 3% had provided a full deposit during that period, while 12% had contributed towards a partial deposit.

However, the Bank of Mum and Dad is not disappearing entirely, Investec argued, with 13% planning to help children or grandchildren buy a property in the future, despite not having done so in the previous five years.

A quarter of respondents said they had more than enough money to last their lifetime, while a further 34% had worked out how much they could safely afford to give away.

David Hunt, head of savings at Investec Bank, said: "It is understandable that retired people want to help their families, but 41% worry that giving too much could leave them short later in life. Before making significant gifts, people should consider their likely living costs, potential care needs and unexpected expenses."

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