Wealthy baby boomers are not only the most well-off generation, but they are the most generous as well.
New research shows that the post-war generation is most likely to give any cash windfalls they inherit to their children or grandchildren.
Nearly half of baby boomers (46%) – the generation born between 1945 and 1965 – have inherited cash lump sums of more than £10,000 and one in seven (14%) have received £100,000 or more.
When quizzed by insurance provider SunLife, 40% they would pay the cash forward a generation,
while 20% would gift the money to their grandchildren.
Financial support for families
And 30% confirmed that they would unlock money from the value of their homes so that they could give the money to their loved ones as a living inheritance.
The study, which spoke to more than 1,000 over 55s, found 41% already offer regular financial support to their families.
The firm’s director of marketing, Ian Atkinson, said: “We know that for many people over 55, family plays a significant part in their life. One in five admits they are worse off than expected because their children need more money help than they’d planned for.
“Despite already providing both financial and practical support, three in 10 baby boomers plan to use equity release to create a living inheritance for children and grandchildren.
“Far from hogging the nation’s resources, baby boomers are unlocking tax-free cash from their home to help family members get their foot on the property ladder, or clear university fees and debt.”
In separate research, the firm revealed 40% of those aged between 50 and 70 years old are saving to pass their wealth on as an inheritance, while 50% plan to leave their home to their loved ones.
However, the company’s research also found that a third of over 50s are worried that they might run out of cash once they have retired.
Many suspected that they do not have enough saved, which could explain why one in seven aged 66 or over are still working.
Jobs the retired are taking include making food and crafts for markets and fairs, setting up an online business, tutoring and modelling for art classes.