£293bn in wealth earmarked for younger generations

More than £293bn is currently earmarked by parents and grandparents to pass down to younger generations, according to research from The Openwork Partnership.

A nationwide study by the financial advice firm has revealed that children and grandchildren can expect an average early inheritance of nearly £9,500 each, with 60% of parents and grandparents planning to give gifts for major purchases before they die.

The findings suggested that one in nine (11%) of parents and grandparents are planning to give more than £25,000 each. However, not all children and grandchildren can bank on an early inheritance with 27% of parents and grandparents – the equivalent of 8.5 million – not planning to give anything.

The Openwork Partnership suggested the financial impact of the coronavirus pandemic has not damaged early inheritance plans too much, with just 6% of parents and grandparents worried they may have to cancel their plans.

Furthermore, 22% of parents and grandparents indicated they plan to give more or give the money earlier as a result of the pandemic, while 18% revealed they have cut the amount of the planned pay-out or will delay the gift.

“The sheer size of the amount that parents and grandparents plan to give as early inheritances shows how important intergenerational wealth transfers are in the economy,” commented The Openwork Partnership chief commercial officer, Mike Morrow.

“Average gifts per child or grandchild of nearly £9,500 are significant and £293bn makes a major contribution to the wealth of younger generations.

“The size of the gifts underlines the need for trusted advice on how best to use the money whether it is to pay for house deposits or pay off debt or to invest for the future. Parents and grandparents as well as children and grandchildren would benefit from an ongoing relationship with a financial adviser.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.