Fam­ily val­ues: bank of granny and grandad more im­por­tant than ever for younger gen­er­a­tions

The Daily Telegraph - Your Money - - FRONT PAGE - Lau­ren David­son

The Bank of Mum and Dad is get­ting older, as fam­i­lies rely in­creas­ingly on their elders’ wealth. Four in 10 grand­par­ents hand cash to their fam­i­lies ev­ery year, giv­ing an av­er­age of £1,475 each, ac­cord­ing to Char­ter Sav­ings Bank. Their do­na­tions add up to £21bn a year, not to men­tion £4.3bn worth of free child­care – but they could bet­ter help their grand­kids by in­vest­ing at birth. Brewin Dol­phin, a wealth man­ager, looked at what a yearly con­tri­bu­tion of £2,880, the an­nual ex­emp­tion for in­her­i­tance tax pur­poses, would build in 18 years. A cash Jisa pay­ing 1.5pc would cre­ate a £59,894 pot, a stocks and shares Jisa at 5pc would grow to £85,072, while a child pen­sion pay­ing 5pc would be worth £106,340 by the child’s 18th birth­day due to tax relief.

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