Bank of Gran and Grandad pays out average £39,350
17 August 2016
- One in five retired homeowners releasing equity to help out family
- More than two-fifths (44%) helping out their children are doing so to the tune of £20,000
Its data shows over one in five (21%) retired homeowners are accessing the money in their homes to treat their children and grandchildren with the money predominantly being used to help children improve their long-term finances.
More than two-fifths (44%) of those unlocking equity in their home to pass on to children are helping out to the tune of £20,000, a generous 18% are paying out over £50,000 while 6% gift more than £100,000 to their loved ones.
Financial support for children includes helping them get a foot on the property ladder with £33,350 contributed on average towards house deposits. Other popular reasons include buying cars, family weddings and starting new businesses, with around £6,000 being spent on cars and £11,000 going towards family weddings. And the generosity doesn’t stop there – an average of £24,780 goes towards giving grandchildren a helping hand.
Key believes the money raised through equity release is seen by many as the best early inheritance that they can give, and one which can have a dramatic effect on their families’ longer term financial wellbeing.
Dean Mirfin, technical director at www.keyadvice.co.uk, said: “Attitudes to inheritance are changing as people recognise the many benefits of using property wealth to help their family and friends while they are still alive. By taking advantage of the tax free benefits of equity release many pensioners can control how the money is used as well as see the immediate benefits of the gift they are giving their loved ones. Many see this early inheritance as a much greater benefit today than their children inheriting from them later.”
“Many retirees do not relish the thought of their children and grandchildren going without and are more than happy to step in to ease the financial pressures on younger families who are just starting out.”
Anyone looking to release equity from their home can get Key’s independent guide to equity release by calling 0800 531 6027 or visiting www.keyadvice.co.uk/equity-release/request-a-free-guide