Grandparents raid pensions to help grandkids
Some 2.4 million grandparents are planning to gift at least part of their pension savings to their grandchildren or have done so already, the study by LV= found.
It said grandparents are willing to give away substantial amounts to their grandchildren, with the average grandparent having already spent £1,633, and 6% having given gifts in excess of £10,000.
The generosity shows no sign of stopping, with 56% planning to give away even more in future. The average grandparent expects to give away £2,938 in the coming years, with charitable grandmas expecting to give away £173 more than granddads on average.
Grandparents are using pension savings for everything from helping grandchildren onto the housing ladder (21%) to university fees (20%) or cars (17%).
John Perks, managing director of retirement solutions at LV=, said: “It’s heart-warming to see grandparents so willing to help out their grandchildren both day-to-day and with large ticket purchases.
“With one in five using their pension to help out, it’s important these kind individuals plan for their retirement and have enough money left for themselves, as even smaller outgoings like bills can become harder to meet later in life, as well as the flexibility to access it.”