Almost half (45%) of grandparents have no financial plan in place for their grandchildren, despite the overwhelming majority (89%) considering it important, new research from Sanlam has revealed.
Of those who considered it important to provide financially for future generations, over a third (35%) deemed it “highly important”.
The research also found that individuals who receive regular financial advice were more likely to have a plan in place. Of those with a plan, just under three quarters (73%) receive advice, compared to just a fifth (21%) of those without a plan.
Grandparents who made the decision to plan ahead, were more likely to feel confident (62%), excited (57%) and relaxed (60%) about their finances. In contrast, those who had not made provisions for grandchildren reported feeling nervous (50%), uncertain (50%) or resigned (56%).
Lawrence Cook, head of UK intermediary distribution, Sanlam UK, said: “At a time when young people are increasingly unable to save enough for a house deposit, leave university without substantial debt, or put aside cash for a rainy day, it is understandable that parents and grandparents want to be able to help. The survey demonstrates the clear value that advisers add in helping people put in place future financial plans, encouraging confidence and providing peace of mind.
“People want to plan and to feel they are doing the best by their families and loved ones, it is where the power of advice is clear. Gaining an understanding of a client’s circumstances and priorities beyond the here and now can reap real rewards and help balance the financial demands of today whilst looking ahead to the long-term financial health of the client and the wider family.”
