The cost-of-living crisis is leading to further dependence on the Bank of Mum and Dad, following an extended period of support during the pandemic.
Research from Saga Equity Release showed in October 2020 1 in 5 of parents said they were helping their adult children financially and now almost two years on this support has intensified with 1 in 4 providing assistance - and a similar proportion expect to still be doing so in a year's time.
The findings reveal the majority of parents (64%) expect the current cost of living crisis will have a greater impact on their adult children's finances than Covid-19 because of rising bills, a lack of savings together with increasing rent or mortgage payments.
The report showed 1 in 4 people (24%) said the cost of living crisis has changed how they plan to share their estate with their family – rising from 21% due to the pandemic. Of the 2000 people questioned more than a third (34%) said they are now more open to different types of inheritance, with the same proportion saying they want to see their children benefit before they die.
The ILS World private client team has been supporting international families for more than 30 years and this report is pertinent as we have seen the issue of estate planning and wealth transfer rise up the agenda.
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