76% of homeowners over the age of 55 are looking to help their children financially and 22% their grandchildren, according to new research from equity release adviser Key.
Average handouts for their children are nearly £17,000 while grandchildren can look forward to average £11,300 in pre-inheritance, Key’s study found.
Its research among homeowners aged 55-plus found 46% have already helped children while another 30% plan to do so. That equates to around 8.6 million homeowners helping out families.
The study found around 4% have also made financial gifts to grandchildren and another 18% plan to do so – the equivalent of around 2.5 million homeowners aged 55 and over.
The money is being given to help with a range of financial needs ranging from house deposits to paying off debts.
Homeowners in the North East lead the way in generosity to children with 94% having already given or planning to give while the grandchildren of homeowners in London are the most likely to receive financial help with 34% expecting to give cash.
Will Hale CEO at Key said: “The over-55s are truly a generous generation, with many looking to access their housing equity help out their children and grandchildren. Of course not all over-55s are homeowners and not all can afford to give money but those who can generally want to.
“Indeed with more than three out of four planning to help children and one in five helping grandchildren there is clearly is a real desire amongst this group to support younger generations and a recognition of some of the financial challenges they are facing. Despite recent reports pointing to a growing intergenerational divide our experience is that families continue to offer financial support when it is needed across the generations.
“The over-55s have done well out of property wealth growth and many may be benefiting from generous company pension schemes. However, whilst their current financial well-being is enabling them to help out family there may be worries of over-extending themselves and under-estimating the costs involved in the latter stages of life. Therefore, it is vital that the over 55s seek specialist advice when choosing to access the wealth in their property.”