Grandparents becoming the financial white knight
Young adults are increasingly relying on their parents and grandparents for financial help, latest research has revealed.
According to the retirement advice firm Responsible Equity Release, around 75 per cent of parents have had to provide financial support to their adult children in the last year, typically in the aftermath of university.
But it is not just parents who are coming to the financial assistance of the younger generation; in the last 12 months around 2.5million grandparents provided close to £650million to support their grandchildren.
Older generations, however, are experiencing their own financial difficulties with many not having cash readily available to help their families. However there are still ways they are able to ease their loved ones money worries as Richard Espley, Head of Equity Release at Goldsmith Williams, explains:
“With annuities failing to provide many retirees with the level of retirement income they had hoped for and with the increasing cost of living meaning they need more, many are left with little disposable income at the end of the month.
“However what many retirees lack in spare cash they more than make up for in assets; the average property value for the over 50s is approximately £258,000. Therefore those who wish to offer some financial support to their loved ones can do so by using equity release.
“Equity release allows a homeowner to release some of the funds tied up in their property whilst retaining the right to live there.
“With loved ones facing a tough time financially including the struggle to raise a sufficient deposit to get on the property ladder, many older homeowners are turning to equity release as an early inheritance tool.”
Content correct at time of publication