Over £400 billion could be passed down from grandparents straight to grandchildren in the coming decades.
A study conducted by pension company Royal London found that most property-owning grandparents aged between 75 and 85 are giving away large amounts of money to children and grandchildren while still alive. Many are also saving money with the aim of passing it on to help younger family members buy a home. Those aged 45 to 64 also say they intend to pass on money to their own children, even if it is not specified by their own parents in their will.
Inheritance and Social Mobility
40% of those aged 45 to 65 say that they feel pressure to pass on wealth to their children, with 62% concerned about the financial position of the younger generation. Continual house price increases without relative wage increases have put younger people in a weaker financial situation than older generations. A report this year from the Institute for Fiscal Studies (IFS) said that the eventual wealth of young people is likely to depend on how well off their parents are, as wealth creation and social mobility becomes more difficult.