29% of grandparents have lent or gifted money to grandchildren: new research
Amidst a turbulent financial landscape – it’s no secret many young adults are facing an uphill battle in achieving financial stability.
New research from Saga has revealed unique insights into the shifting landscape of intergenerational lending. The survey of 1,000 grandparents aged 65 and above, along with 1,005 grandchildren aged 18-40, sheds light on the emerging trend of they’re calling the ‘Bank of Grandma and Grandad’ and reveals 29% of grandparents having lent or gifted money to grandchildren – rising to 64% among those over 85.
The grandchildren poll confirmed that grandparents are among the top three sources they’d most likely turn to first for financial support – parents were unsurprisingly top at 45%, followed by the bank (22%) and grandparents (15%).
Key insights:
- £2,119.10 was the average amount gifted or lent to grandchildren from grandparents.
- Almost half (48%) of grandparents have no preference on how their grandchildren spend the money they’re given, while buying a property (20%) was the next most popular option.
- Grandparents are the third point of call for financial help for grandchildren, with 15% saying this – behind parents (45%) and banks (22%).
- 59% of grandchildren who received a financial gift from the grandparents would not have been able to afford to afford their purchase without this assistance.
The survey shed light on a remarkably generous group of grandparents, as of those polled, 88% of grandparents who’ve lent or gifted money said they would do so again. 45% said ‘yes’ when asked if they prefer to spend or give money to their grandchildren over themselves.
The emergence of the “Bank of Grandma and Grandad” offers a glimmer of hope for young adults seeking to navigate their economic challenges in an era where traditional pathways to financial independence prove increasingly elusive.
A Saga Representative stated: “We’ve long known about the Bank of Mum and Dad but as people live longer and economic times change, here at Saga, we wanted to investigate if the Bank of Grandma and Grandad was now open for business. Supporting loved ones in times of need is a priority for many grandparents as a majority who have lent, or gifted money previously are happy to do so again.”
For more information, see here: https://www.saga.co.uk/money/equity-release/articles/bank-of-grandma-and-grandad