UK Wedding News
20/06/2014
The 'bank of gran and grandad' is now becoming increasingly common in Britain as millions of grandparents now offer financial support to their grandchildren.
That's according to a new survey conducted by retirement specialist LV=.
It found that nine in 10 grandparents (86%) have given their grandchildren cash since 2012. Most tend to give an average of £30 a month, but some admitted they had given as much as £50,000.
In addition, 52% of grandparents surveyed admitted they plan to give their grandchildren money within the next five years – with an average amount of £1,000.
Over the last five years, 17% of grandparents have contributed to child trust funds or savings accounts, while 47% said they give their grandchildren pocket money. 15% of those said they regularly gave pocket money.
Even as the grandkids get older, the generosity doesn't end. For example, they study found that many grandchildren are now being offered financial support throughout their journey into adulthood and beyond. One in eight grandparents confessed they had paid out money to help with a 'big purchase', such as a car or luxury holiday, while one in 20 said they had even contributed towards school and university fees.
The research suggested that due to the impact of rising living costs on families, many grandparents have stepped in financially. LV= said 70% of those polled give their grandchildren money because they want to help out where they can, with 16% saying that they help out because the child's parents simply cannot afford to.
When it comes to grandparents' generosity, 4% said they see the financial gifts they make as "a living inheritance". In fact, over 37% of grandparents said they planned to give their grandchildren financial help in the future because they want to be around to see them enjoy the cash, and don't want their gifts reduced by inheritance tax at a later stage.
Commenting on the findings, Richard Rowney, LV= Life and Pensions Managing Director, said: "The generosity of grandparents in Britain is clear to see and it is great that so many feel comfortable enough to be able to help out their family and plan to continue doing so.
"However, the average retirement is now much longer than past generations and people's lifestyle and associated costs are likely to change over this period. It is important that those approaching retirement choose to structure their income in a way that offers them enough financial flexibility to enable them to remain generous, but also adapt to their changing needs."
(JP/IT)
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'Bank Of Gran And Grandad' Increases
The 'bank of gran and grandad' is now becoming increasingly common in Britain as millions of grandparents now offer financial support to their grandchildren.
That's according to a new survey conducted by retirement specialist LV=.
It found that nine in 10 grandparents (86%) have given their grandchildren cash since 2012. Most tend to give an average of £30 a month, but some admitted they had given as much as £50,000.
In addition, 52% of grandparents surveyed admitted they plan to give their grandchildren money within the next five years – with an average amount of £1,000.
Over the last five years, 17% of grandparents have contributed to child trust funds or savings accounts, while 47% said they give their grandchildren pocket money. 15% of those said they regularly gave pocket money.
Even as the grandkids get older, the generosity doesn't end. For example, they study found that many grandchildren are now being offered financial support throughout their journey into adulthood and beyond. One in eight grandparents confessed they had paid out money to help with a 'big purchase', such as a car or luxury holiday, while one in 20 said they had even contributed towards school and university fees.
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The research suggested that due to the impact of rising living costs on families, many grandparents have stepped in financially. LV= said 70% of those polled give their grandchildren money because they want to help out where they can, with 16% saying that they help out because the child's parents simply cannot afford to.
When it comes to grandparents' generosity, 4% said they see the financial gifts they make as "a living inheritance". In fact, over 37% of grandparents said they planned to give their grandchildren financial help in the future because they want to be around to see them enjoy the cash, and don't want their gifts reduced by inheritance tax at a later stage.
Commenting on the findings, Richard Rowney, LV= Life and Pensions Managing Director, said: "The generosity of grandparents in Britain is clear to see and it is great that so many feel comfortable enough to be able to help out their family and plan to continue doing so.
"However, the average retirement is now much longer than past generations and people's lifestyle and associated costs are likely to change over this period. It is important that those approaching retirement choose to structure their income in a way that offers them enough financial flexibility to enable them to remain generous, but also adapt to their changing needs."
(JP/IT)
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