Older family members are expected to provide more for their younger relatives as a result of COVID-19, according to Claire Singleton, chief executive of Legal & General Home Finance.
She said: “On average, an older family member already provides £113 each month, and following COVID-19, many expect to spend an additional £353 overall to help their family through the pandemic.”
Singleton went on to explain that parents and grandparents often provide support for large one-off lump sums, such as housing deposits.
However, she believes that the older generations are being increasingly relied on as a vital source of regular monthly support.
She said: “This routine support is crucial for many younger people, with some using it to pay for bills and everyday essentials, as well as big-ticket purchases.”
Furthermore, Singleton outlined that this is a financial balancing act for the older generation, despite many detailing that it is a positive experience.
Singleton said: “We spoke to a number of families who regularly provide financial support to their children, and children’s children; many told us how amazing it was to see loved ones enjoy the money, which underlines the potential benefits of gifting, when done properly.”