16th November 2022
Passing Wealth Down Through The Generations Available Options 1-2
Grandparents who want to help their grandchildren save for a home should consider opening a Lifetime ISA (LISA). Only the child/grandchild can open and manage their LISA as the account holder, but money can be gifted to an account holder to pay into their LISA.
According to the study, those assisting grandchildren gave an average of £15,000, with 10% giving more than £50,000. The most common reasons grandparents assisted grandchildren financially were to help with day-to-day costs (43%) and bills (37%).
One in every four (24%) grandparents contributed money to assist their grandchildren in purchasing a home.
SAVING FOR A GRANDCHILD OR CHILDREN
When it comes to saving for a child or grandchild, parents and grandparents have several options. Choosing the best one can make a significant difference. Tomorrow we will look at those options available to you. Please contact us for more information on how we can help protect your future financial well-being and the options available to you.
A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028 UNLESS PLAN HAS A PROTECTED PENSION AGE). THE VALUE OF YOUR INVESTMENTS (AND
ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE. YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS. THE VALUE OF YOUR INVESTMENTS CAN
GO DOWN AS WELL AS UP AND YOU MAY GET BACK LESS THAN YOU INVESTED. THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE TAXATION AND TRUST ADVICE. TRUSTS ARE A HIGHLY COMPLEX AREA OF FINANCIAL PLANNING.
Source data:  Research from LV= highlights how millions of people have helped friends and family
financially in the past six months. The LV= Wealth and Wellbeing Monitor – a quarterly survey of
4,000 UK adults – reveals that many people struggling with everyday living costs are turning
to family and friends for support 23/08/22.