More than one in three (36 per cent) of over-55s contribute cash from their pensions to help support their children and grandchildren, according to research by Birmingham Midshires.

Furthermore, more than one in ten (12 per cent) of those over the age of 55 take money from their savings and investments to contribute towards household income.

It seems that elderly people are generous when it comes to splashing the cash as almost half (49 per cent) say they are "entirely happy" to dig deep, while 31 per cent claim to be "moderately" happy to help out financially.

Jason Robinson, director of savings operations at the firm, comments: "These findings suggest that the over-55s are actually using their pensions and savings to provide a financial lifeline to younger family members - at the same time as adjusting to enormous change in their own income and lifestyle."

Help the Aged recently reported that due to a decision by the Department for Work and Pensions, those who receive pension credit or disability benefits will not be able to collect their cash from their Post Office after 12:30 GMT on Christmas Eve.