MORE than four million retired people have given money to their family or friends in the past six months, research for Dorset pensions and retirement business LV= suggests.

The research found those who were helping their grandchildren gave £15,000 on average, while 10 per cent gave more than £50,000.

The LV= Wealth and Wellbeing Monitor produces its results from quarterly surveys of 4,000 adults.

It found 35 per cent of retirees equivalent to 4.3m people had given money to family or friends in the past six months.

In all, 39 per cent of adults equivalent to 20.7m people had helped family or friends financially in that time. The average amount given was £8,400.

Among retirees, the average gift was £7,000, with two per cent giving more than £50,000.

The main reason given for giving money was day-to-day costs, cited by 42 per cent of people. Thirty-seven per cent named help with bills as the reason for giving.

"Mass affluent" people those with assets of £100,000 to £500,000 excluding housing gave an average of £13,000 on average, with six per cent giving more than £50,000.

Clive Bolton, managing director of protection, savings and retirement, at LV=, said: "LV='s research highlights the rise in the cost of living is affecting millions of people. A third of young adults (18-34) and families with young children are struggling financially. Many are turning to family and friends to help for day to day expense such as utility bills, housing costs and childcare.

"One striking aspect is the extent to which grandparents are stepping in with thousands of pounds of support and helping grandchildren with housing deposits in addition to everyday expenses.

"It's understandable grandparents want to help their family and pass wealth down through the generations. When doing this, there are a number of options available, each with different advantages and disadvantages."