Older generation financially gifting families in lockdown

Thirty-one per cent of people have suggested that giving a financial gift to children or grandchildren is more important to them since the outbreak of COVID-19, compared to just 23% before the pandemic, research from Hodge Bank has revealed.

The survey found that a third of people have received a financial gift from family, with those aged between 25 and 34 the most likely to receive one.

Hodge revealed that parents have been responsible for 72% of all gifts during lockdown, but the study also revealed that financial gifts can come from all corners of the family – including children (14%) and siblings (14%).

The findings, based on interviews with more than 3,000 people about their attitudes towards finances and their aspirations for the future, also found that 40% of beneficiaries are expecting to pay their parents back – although this figure dropped to 28% if the gift came from grandparents.

From the gift donor’s perspective, Hodge’s figures stated that 26% of people expect the gift to be paid back, and that this drops to just 15% of grandparents expecting the money back.

“Our study showed that, as a nation, we all want to help our family out when it comes to money,” Hodge business development director, Emma Graham, commented.

“It is clear that the COVID-19 lockdown and subsequent predicted economic downturn, has led to more families looking to share wealth to help younger children or grandchildren during this difficult time.

“Many people may look to later life mortgages, where many products have reduced their rates and have flexible lending criteria, to help out a loved during these difficult times.”

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