Bridging the generation gap

Despite the way they’re portrayed, the older generation is not nearly as critical about the younger generation as you’d think. Over 50% think the younger generation has it rougher than they did when it comes to money, with 29% thinking the opposite.

According to a survey by Interactive Investor, leaving an inheritance for the generation that follows is a top priority for 35% of retiring or near-retiring people, and the vast majority of respondents would like to leave something. Of those at retirement age, 12% have not drafted a will and of those who have, 27% think it needs reviewing. Among those not yet retired, 25% have yet to draft a will, and a similar percentile to those who have retired think it needs to be reviewed.

Of those who have helped the next generation financially, only 3% regret doing so. Over a quarter of respondents (27%) have gifted their children with money to make a house deposit, and 8% have loaned their children money. Not being able to help the younger members of the family with large purchases is a concern of 24% of the retired.

And it’s not just financial. Up to 18% of grandparents say that they would look after their grandchildren and consider this to be unpaid work. Grandparents can also help their loved ones by setting up Junior ISAs and helping them to establish some capital for later in life. To find the best platform for junior ISAs and Sipps, check out the DIY investment platform calculator.

Photo by Vidar Nordli-Mathisen on Unsplash

Article is accurate at date of writing.