UK families under financial pressure will pool their retirement savings in order to share the costs of future needs, according to findings in a report commissioned by UK financial services provider Friends Provident.

The report found that as 30-somethings fail to invest in pensions and an ageing population spends its children’s inheritance, families are moving back in with each other to share costs. Friends Provident said that the report highlights the need for new ways for people to save for retirement.

One option suggested by the insurer is fractional pensions, a method of pooling resources in order to attract a better return on investment. Fractional pension holders would invest money at an agreed rate, all making the same contribution and all benefiting from the accrued effects of a much bigger pension pot than the one they could access as an individual saver, the report said.

Jeremy Ward, head of pensions marketing at Friends Provident, said: With the current focus on retirement created by the Turner Report and A-Day we think this is a positive approach for some families which is worth investigating to see if legislation can, in time, be changed to accommodate it.