Around 2.4 million grandparents are breaking open their pension piggy banks to help their grandkids, a study has indicated.

The average grandparent has already given away £1,633, and plans to give away £2,938 more in future, according to new research carried out by Opinium Research for LV=.

House deposits, university fees and cars were found to be common reasons to provide gifts.

A quarter of  grandparents who have already given away money to their grandchildren have taken the funds from their pension. A further one in six (16%) plan to use their pension for this reason once they reach retirement age.

More than one in twenty (6%) have given gifts of more than £10,000 with many grandparents (56%) planning to give away even more money in future. The average grandparent expects to give away £2,938 in the coming years, with charitable grandmas expecting to give away £173 more than granddads on average.

John Perks, managing director of Retirement Solutions at LV=, said: “It’s heart-warming to see grandparents so willing to help out their grandchildren both day-to-day and with large ticket purchases. With one in five using their pension to help out, it’s important these kind individuals plan for their retirement and have enough money left for themselves, as even smaller outgoings like bills can become harder to meet later in life, as well as the flexibility to access it.”

Pension savings have been used to help with a wide range of things, from helping grandchildren get on the housing ladder (21%) and other high-ticket items like university fees (20%) or cars (17%). A similar number would help out with more day-to-day expenses like bills (21%) and hobbies (19%).

Grandparents often view the financial gifts they make as a ‘living inheritance’, with more than a third (37%) wanting to be around to see their grandchildren enjoy the money.