More than one million families are expected to contain more than one retired generation by 2034, marking a 32 per cent increase on the 813,000 multi-retiree families that exist currently, research from St James’s Place has revealed.

SJP’s analysis found that multi-retiree families are increasing faster than previously projected, with 813,000 families with more than one generation retired, over 100,000 higher than the 704,000 projected in 2018.

This trend shows no sign of stopping, as the research estimated that there will be between 60,000-100,000 more families than initially expected with more than one generation retired over the next 20 years.

According to the analysis, 963,000 families will contain more than one retired generation by 2029, marking an 18 per cent increase on the 813,000 multi-retiree families that exist currently, with this figure set to grow to 1.4 million by 2044.

This could have a significant impact on pensions savings, as the research found that retirement income is expected to stretch across multiple generations, causing many people to reassess their retirement plans.

Indeed, the research found 55 per cent of future retirees expect to provide financial support in their retirement to other generations – compared to just over a third (37 per cent) of current retirees.

Future retirees also expect to provide financial support to other generations through paying for everyday living costs (22 per cent), buying a house or paying off a mortgage for someone (16 per cent) or paying for childcare (14 per cent).

The impact of these costs is being felt, as many future retirees are planning to take significant action to ensure they can financially support their loved ones once retired.

In particular, 14 per cent plan to work in retirement to supplement their income, while 12 per cent are expecting to cut their essential spending, 12 per cent are delaying retirement to build more savings, and 9 per cent are reducing the amount they pass on in inheritance.

In addition to this, 8 per cent said they plan to access their pension pot early to provide for others.

Commenting on the findings, St James’s Place divisional director for retirement and holistic planning, Claire Trott, stated: “With people living longer, retirement provision more and more becoming the responsibility of the individual, and the economic landscape evolving, the way we need to think about planning for the future has fundamentally shifted.

"The next generation of retirees can’t expect to follow the same path as those currently in retirement.

“There is a lot of pressure on people’s finances currently, and so building sufficient funds for your future whilst also supporting other generations may not be the priority and can feel daunting.

"In addition to this, future retirees are increasingly expecting to financially support others once retired, and retirement income is having to stretch in multiple directions. In order to do this, our approach to retirement planning must change.

"Putting in place the right plans at an early stage will allow greater opportunity to build wealth over time and leave behind as much as possible when you’re gone, without making unnecessary sacrifices along the way. Seeking professional advice can help you navigate these plans, giving you and your loved ones more security in future.”

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