Three out of four over-55s said they already have or plan to help out their children financially, according to Key, and one in five will provide cash to grandchildren.

The equity release firm said that the North East leads the way in terms of generosity to children with 94% having already given or planning to give.

Average handouts for children across the UK are nearly £17,000 while grandchildren can receive £11,300.

The money is being given to help with a range of financial needs ranging from house deposits to paying off debts.

Will Hale CEO at Key said: “The over-55s have done well out of property wealth growth and many may be benefiting from generous company pension schemes.

“However, whilst their current financial well-being is enabling them to help out family there may be worries of over-extending themselves and under-estimating the costs involved in the latter stages of life. Therefore, it is vital that the over 55s seek specialist advice when choosing to access the wealth in their property.”

The research also found 78% of over-55s are worried that by gifting now they might run into financial trouble themselves in later life while 76% are worried about the possible tax implications.