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Grandparents step in with money help during Covid-19

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Written by: Emma Lunn
21/07/2020
Nearly half (48%) of UK grandparents have stepped in to financially support their grandchildren during the Covid-19 outbreak, despite being concerned about their own retirement income.

According to Killik & Co, a third (32%) of grandparents have given cash to their children, 8% have provided childcare and 6% have helped with rent and mortgage payments.

But a quarter of grandparents haven’t been able to see their grandchildren during the past few months, not even remotely.

However, 20% of those questioned said they were worried about the value of their private pension and a further 13% were also worried about the stability, as well as the value, of their workplace pension.

Many grandparents have shown an entrepreneurial streak to protect their retirement funds, with 45% taking action to generate income as a result of the pandemic. This includes selling items on eBay (23%) and looking for part-time work (10%).

Svenja Keller, head of wealth planning at Killik & Co said: “Much of the focus around the financial fall-out from Covid-19 has been on the recent volatility and concerns about the value of pension pots, but the pandemic has hit all generations. Our research shows that grandparents want to provide for their families, even if this makes them worry about their own financial future. However, it shouldn’t be the case that they are choosing their family’s financial stability over their own.

“If you’re a grandparent, it is important to secure your own lifestyle first, and only then gift what is possible. Understanding your long-term cash flow – for example tracking income and outgoings and looking at how your existing assets can support you – is key to putting a plan in place. This will provide you with the clarity you need for your own situation and ultimately help you to make decisions about providing sustainable financial support to the younger generations as well.”

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