Grandparents – stop wasting retirement savings on looking after children | Personal Finance | Finance
Grandparents are being urged to protect their own finances as the hidden cost of childcare continues to rise.
New research from subscription lender Creditspring found that 70% of grandparents who help look after grandchildren say it feels more expensive than it did a year ago, while many are cutting back on savings, holidays and treats just to keep helping family.
Some are even dipping into retirement plans to cope.
Grandparents estimate they now spend almost £20 a day caring for grandchildren, covering food, fuel, activities and rising household bills.
One grandmother said she had lost around £500 a month in income after cutting back work shifts to care for her two grandsons.
Tamsin Powell, consumer finance expert at Creditspring, said older people should not feel guilty about protecting their own financial wellbeing.
She said: “Grandparents are a lifeline for many families, often stepping in to provide childcare that helps parents work, save money and manage busy lives. But this support is not cost-free.”
She warned many older people are struggling with the combined emotional pressure and financial strain. “They want to help and many feel guilty when they cannot, but they also need to protect their own financial wellbeing.”
Powell urged families to have honest conversations early. She said: “If looking after grandchildren regularly is affecting your budget, raise it before the pressure builds.”
Grandparents should not feel obliged to absorb every cost themselves. Powell said: “If childcare is affecting your own spending, savings or wellbeing, it is reasonable to set limits.”
Grandparents should also agree in advance what support includes, especially if childcare is regular every week.
Parents could help by paying towards food, activities or petrol costs, rather than leaving grandparents to absorb the extra expense.
Review arrangements as costs change. Powell said: “What worked a year ago may not work now. If household bills, fuel or food costs have increased, it is fair to revisit the arrangement.”
