Grandchildren `spoilt` despite credit crunch

Older people are cutting back on personal spending but still finding cash to buy treats for their children and grandchildren, a new study from Saga has revealed.

Rising costs for everyday items and household bills is pushing the over-50s into cutting spending on themselves, with 83 per cent of women and 77 per cent of men making lifestyle changes to cope with the squeeze.

The research found 53 per cent of people over 50 have reduced the amount they use their car and 50 per cent have cut back on treats for themselves.

However, 13 per cent told Saga they had reduced spending on their children and grandchildren.

Chief executive Andrew Goodsell said that "grandparents seem determined to insulate their grandchildren".

This may lead to gaps in pensions or even to debt in later life.

Earlier this month, Skipton Building Society said the credit crunch had not affected the pocket money of nine out of ten children and the over 55s were the most generous parents.