Grandparents hold collective wealth of over £5tn

Grandparents across the UK hold wealth amounting to over £5tn, or an average of £350,634 each, according to research by Charter Savings Bank.

Property is the main source of their wealth, with homes worth an average of £225,623 accounting for almost two-thirds of the value of their assets. Other sources include pension pots (£32,652), investments (£32,013) and bank savings (£29,725).

However, many grandparents still have some debts. One in five still hold mortgages on their main home and one in three owe money on loans and credit cards. On average they have £14,810 in liabilities.

Over half of grandparents acknowledge that they are better off than their parents were at the same age, and a majority expect their children and grandchildren to be as well off as them when they reach the same age.

In a sign of how many pensioners are sharing their money with younger generations during their lifetimes, four in ten grandparents are either already gifting cash to their children and grandchildren or plan to do so, Charter Savings Bank found. Three-quarters of grandparents plan to pass down their wealth to their children, and half plan to bequeath to their grandchildren.

Paul Whitlock, director of savings at Charter Savings Bank, commented: “Baby boomers may be the richest generation ever, but they are optimistic that their families will in time be better off than them. This may be difficult to believe for millennials struggling to reach the property ladder but much of their grandparents’ wealth will eventually find its way to them either through gifting or inheritance.

“While houses are the biggest source of wealth, the savings accumulated by the average grandparent almost match the size of their pensions and investments, demonstrating the role that a healthy savings habit plays in any balanced portfolio.

“Whether you are lucky enough to be expecting to inherit all or part of your parents’ or grandparents’ wealth or not, it’s important for people of all ages to make regular cash savings and seek out the best rates to live the lifestyle you aspire to have in later life.”

Posted on October 3rd 2018

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