Irish Wedding News
16/10/2013
The study, which was carried out by the International Longevity Centre-UK (ILC-UK), and supported by Key Retirement Solutions and Partnership, reveals the significant role grandparents are now playing in supporting future generations.
Research found that a fifth of grandparents in England – aged 50 or over – give their grandchildren money, with the figure totalling £647m in 2010. Of the grandparents that give, they are more likely to be homeowners than renters, and are also more likely to have lower or no mortgage debt, according to the report.
The report – Grandparental Generosity – looked at the levels and patterns of financial support from grandparents by using the 2010 English Longitudinal Study on Ageing (ELSA).
It found that just under 2.5 million grandparents gave money to their grandchildren, with contributions to Child Trust Funds (CTFs), tax-free savings accounts for children available from 2005-2010, were made by one in 25 grandparents.
Elsewhere, across England, grandparents gave a cumulative total of almost £333.8m to their grandchildren in 2010, with almost £313.8m contributed to CTFs.
The report showed a trend of which grandparents are more likely to give financially to their grandchildren. A higher proportion of grandparents aged 75-79 gave than from any other age group, while 80-84 year olds gave the highest amount on average.
Grandparental givers are also more likely to provide care for their grandchildren, and be female and married rather than separated or divorced. They are also wealthier than non-givers.
Commenting on the findings, Brian Beach, Research Fellow at ILC-UK said: "This research reveals that millions of grandparents are providing financial support to younger generations. For grandchildren, these transfers are likely arriving at a crucial transition point, impacting educational and housing opportunities. As people live longer and society ages, grandparental giving may have an increasingly important impact on the social mobility of grandchildren."
Ged Hosty, Managing Director of Equity Release at Partnership, added: "As families become increasingly financially stretched and time-poor, grandparents are stepping in more and more to provide support. However, while this trend is to be welcomed as it helps to draw families closer together, it can put a strain on the grandparents finances that they may struggle to recover from."
Dean Mirfin, Group Director, Key Retirement Solutions also commented: "It is evident that with extended generations increasingly amongst today's population that grandparents are opting to help with their grandchildren, not just in terms of time but also financially.
"Grandparents in many cases are taking a pragmatic view with regard to this financial support seeing it as inheritance at a time when money is needed most or has the potential to most influence the financial well-being of the rest of their families.
"For many being there to witness the impact of their support is a key driver to gift at the right times, and to direct how that support is used, and this is a trend we expect to see continue."
(JP/MH)
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Grandparents Subsidise Grandkids £647m A Year
A new study has revealed that grandparents are now subsidising their grandchildren more than half a billion pounds each year.The study, which was carried out by the International Longevity Centre-UK (ILC-UK), and supported by Key Retirement Solutions and Partnership, reveals the significant role grandparents are now playing in supporting future generations.
Research found that a fifth of grandparents in England – aged 50 or over – give their grandchildren money, with the figure totalling £647m in 2010. Of the grandparents that give, they are more likely to be homeowners than renters, and are also more likely to have lower or no mortgage debt, according to the report.
The report – Grandparental Generosity – looked at the levels and patterns of financial support from grandparents by using the 2010 English Longitudinal Study on Ageing (ELSA).
It found that just under 2.5 million grandparents gave money to their grandchildren, with contributions to Child Trust Funds (CTFs), tax-free savings accounts for children available from 2005-2010, were made by one in 25 grandparents.
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Elsewhere, across England, grandparents gave a cumulative total of almost £333.8m to their grandchildren in 2010, with almost £313.8m contributed to CTFs.
The report showed a trend of which grandparents are more likely to give financially to their grandchildren. A higher proportion of grandparents aged 75-79 gave than from any other age group, while 80-84 year olds gave the highest amount on average.
Grandparental givers are also more likely to provide care for their grandchildren, and be female and married rather than separated or divorced. They are also wealthier than non-givers.
Commenting on the findings, Brian Beach, Research Fellow at ILC-UK said: "This research reveals that millions of grandparents are providing financial support to younger generations. For grandchildren, these transfers are likely arriving at a crucial transition point, impacting educational and housing opportunities. As people live longer and society ages, grandparental giving may have an increasingly important impact on the social mobility of grandchildren."
Ged Hosty, Managing Director of Equity Release at Partnership, added: "As families become increasingly financially stretched and time-poor, grandparents are stepping in more and more to provide support. However, while this trend is to be welcomed as it helps to draw families closer together, it can put a strain on the grandparents finances that they may struggle to recover from."
Dean Mirfin, Group Director, Key Retirement Solutions also commented: "It is evident that with extended generations increasingly amongst today's population that grandparents are opting to help with their grandchildren, not just in terms of time but also financially.
"Grandparents in many cases are taking a pragmatic view with regard to this financial support seeing it as inheritance at a time when money is needed most or has the potential to most influence the financial well-being of the rest of their families.
"For many being there to witness the impact of their support is a key driver to gift at the right times, and to direct how that support is used, and this is a trend we expect to see continue."
(JP/MH)
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