Gifting to younger generation – £293bn earmarked
16 March 2021
More than £293 billion has been earmarked for younger generations by parents and grandparents, according to The Openwork Partnership.
Children and grandchildren can expect an early inheritance of nearly £9,500 each with three fifths (60%) of parents and grandparents planning to gift money before they die and as many as one in nine (11%) 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.
The nationwide study also found that 6% of parents and grandparents are worried they may have to cancel their plans as a result of Covid-19, while almost a quarter (22%) are planning to give more or give the money earlier as a result of the pandemic and 18% say they have cut the amount of the planned pay-out or will delay the gift.
Mike Morrow, chief commercial officer, 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 £293 billion 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.”
This week sees the launch of The Paraplanner Club, a new initiative devised by Siân Davies Cole and Chloe Phillips, a mentoring...
Professional Paraplanner has teamed up with Brand Financial Training to answer your questions around the exams scheduled for 2021....
Are you signed up to the Professional Paraplanner daily website alert? For more technical, tax, pensions, investment, retirement, protection...