2.4 million grandparents raid pension to help grandkids 2.4 million grandparents raid pension to help grandkids A quarter of grandparents who have helped out grandchildren financially took the money from their pension The average grandparent has already given away £1,633, and plans to give away £2,938 more in future House deposits, university fees and cars are common reasons to gift Forget the Lamborghini, 2.4 million UK grandparents1 have either raided their pension to support their grandchildren, or plan to in the future. According to new research from retirement expert LV=, a quarter of generous grandparents (25%) who have already given away money to their grandchildren2 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. Open-handed grandparents are willing to give away substantial amounts to their grandchildren, whether from their pensions, savings or wages, with the average grandparent having already spent £1,633. More than one in twenty (6%) have given gifts of more than £10,000. The generosity shows no sign of stopping, 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. Pension savings are 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. 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 contact www.the-boomers.com THE SMALL PRINT We hope you are enjoying the site, please note The –Boomers site has been prepared solely for information purposes. Users are advised to seek independent financial advice or in the case of health related content –consult your GP or medical professional. All information, opinions expressed on the The-Boomers are current as of the date of publication, but may become out of date over time. No liability and/or guarantee of performance is accepted or offered. The opinions expressed in The-Boomers do not constitute investment advice or health advice or any other form of advice; independent advice should be sought where appropriate. Articles are supplied strictly without accepting any liability, responsibility or duty of care for their services, content, or links to other subsequent related or unrelated material. The Site contains general information only and does not take into account the individual health issues /objectives or the individual financial situation/objectives or needs of a person or persons. Please see our Terms & Conditions for further information.
