Over £293bn earmarked for younger generations
Over £293bn is earmarked for younger generations by parents and grandparents, according to The Openwork Partnership.
Research collected by Openwork shows children and grandchildren can expect an average early inheritance of nearly £9,500 each, with 60% of parents and grandparents planning to give gifts for major purchases before they die.
This money is intended for paying off student debt or helping with a house deposit.
It is estimated that 11% of parents and grandparents are planning to give more than £25,000 each.
However 27% of parents and grandparents, the equivalent of 8.5 million, are not planning to give anything.
As a result of the COVID-19 pandemic, 6% of parents and grandparents are worried they may have to cancel their plans of providing inheritance to their younger relatives.
Almost a quarter (22%) of parents and grandparents said they plan to give more or give the money earlier as a result of the pandemic, while 18% said they have cut the amount of the planned pay-out or will delay the gift.
Mike Morrow, chief commercial officer at The Openwork Partnership, said: “The sheer size of the amount that parents and grandparents plan to give as early inheritances shows how important intergenerational wealth transfers are in the economy.
“Average gifts per child or grandchild of nearly £9,500 are significant and £293bn makes a major contribution to the wealth of younger generations.
“The size of the gifts underlines the need for trusted advice on how best to use the money whether it is to pay for house deposits or pay off debt or to invest for the future.
“Parents and grandparents as well as children and grandchildren would benefit from an ongoing relationship with a financial adviser.”