The hidden cost of financial caring

A growing role with hidden consequences

Our survey[1] revealed that 8.4 million[2] UK adults – around 16% of the population – are currently acting as financial carers for older, vulnerable relatives. A further 6.1 million[3] expect to take on this role in the future. The scale is striking, but what’s more sobering is the personal cost to those who step in.

We surveyed 4,000 people in the UK, and found that financial caring often begins with subtle signs: a missed bill, confusion over accounts, or, for 29%, seeing an older relative have difficulties using online banking. We found that 19% of carers become involved after a relative asks for help, and 15% after a significant health diagnosis.

In some cases, it’s more serious – 13% of UK adults have seen an older relative fall victim to scams or lose hundreds of pounds before an intervention by a family member. On average, these vulnerable relatives lose £750 through missed bills or fraud before a loved one intervenes.

The personal cost of protecting others

The typical financial carer is 36 years old, supporting a relative aged 70. They help with everything from managing direct debits to liaising with banks and pension providers. Many apply for power of attorney, and some even monitor emails and texts for signs of fraud. 

But this support comes at a cost. One in five say the stress is ongoing, and report experiencing emotional strain, work disruption, and direct financial loss. 22% have used their own money to cover a relative’s expenses. 17% have taken time off work, and 22% have reduced their hours to keep up with the demands of caring.

Pension pitfalls 

The impact on long-term financial planning for carers is profound. One in ten carers have accessed their pension savings early to cover shortfalls created by their caring roles, with 8% taking lump sums for the same reason. And 7% expect to delay their own retirement by five years or more. 

What’s particularly concerning is the lack of knowledge among some financial carers, who are aiming to support their relatives. Only 25% of financial carers surveyed feel they understand how pensions work and 15% say their lack of knowledge caused problems when trying to help.  

From crisis to clarity: a chance to rethink retirement

Yet there are glimmers of hope. 

24% of financial carers were inspired to get their own pension affairs in order after helping a loved one. A third wished their family had discussed financial matters earlier. These moments of reflection point to an opportunity: to turn a reactive role into a proactive one, where financial caring becomes a catalyst for better planning.

The challenge now is to recognise financial carers for what they are—not just helpers, but frontline financial managers. They need clearer guidance, better access to support, and more flexible systems that acknowledge the complexity of their role. 

We’re working to close this gap through innovative services and tools that help DC clients and members make informed decisions as they approach and move through retirement.

For example, our digital guided retirement planner provides tailored support to help pension members make better financial decisions, both in the build-up to, and at, retirement.

Financial carers are performing an essential role in helping their loved ones to navigate their finances, but this shouldn’t come at the expense of a carer’s own financial wellbeing. As the population ages and more of ‘Generation DC’ take on this role – as well as managing their own finances and retirement planning – our industry is evolving to support these changing needs. 

If you found this article interesting, you can find our latest content on DC pensions and investments on our designated DC blog page.

 
[1] Survey conducted, on behalf of L&G, by Opinium between 25 July – 2 August 2025, among 4,000 UK adults. Visit the newsroom to read our research press release.
[2] Of 4,000 UK adults surveyed, 621 describe themselves as financial carers managing money on behalf of an older relative(s). Our modelling suggests that across the UK adult population of 54,196,443, this equates to a national figure of 8,413,998 who are financial carers.
[3] Of 4,000 UK adults surveyed, 453 expect to be financial carers in the future, where they manage money on behalf of an older relative(s). Our modelling suggests that across the UK adult population of 54,196,443, this equates to a national figure of 6,137,747 who expect to become financial carers.