Two million over 50s are saving for grandchildren

Despite the tough economic climate and a flood of statistics showing that pensioners are getting a particularly rough ride, a report out today shows that 1.8 million grandparents are putting money aside for their grandchildren.

The research from Saga Savings reveals that 13% of grandparents are savings for their grandchildren, and of those a fifth are saving £400 or more a year, which would provide their grandchildren with a nest egg of £10,000 when they turn 18. And 11% of over 50s are also saving money for their adult children to help them through the recession, despite many of them being retired or on limited budgets themselves.

The report also shows more than two thirds (70%) of over 50s have provided financial help to their family over the course of the past five years in addition to saving on their behalf and almost half (46%) have given financial help to their adult children when they have fallen on hard times. But it’s not just help through financial hardship that grandparents are providing. 15% of said that they had helped fund treats such as a new computer or holiday for their grandchildren.

Andrew Goodsell, Chief Executive, Saga Group, said:

“Despite the current climate our research proves that we are still a financially generous nation when saving for those we love. It’s good to know that the prudence and experience of many over 50s has enabled them to support their children and grandchildren who need financial help in these uncertain times.”