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How Grandparents are shaping the future
In an era marked by rising education costs and growing concerns about the financial stability of future generations, grandparents are emerging as crucial pillars of support. While their commitment to their grandchildren's education is unwavering, a recent study conducted by the Futurity Investment Group has unearthed fascinating insights into the financial aspects of this support system.
The Generosity of Grandparents.
The Futurity Investment Group's "Grandparents' Contribution to Education" report reveals that a remarkable 76% of grandparents are deeply invested in ensuring their grandchildren receive the best possible education for future success. However, a surprising finding indicates that less than a third (29%) of these grandparents offer direct financial support for their grandchildren's education.
Of those grandparents who do contribute financially, 65% rely on their personal savings. Furthermore, a noteworthy 72% of Grandparents intend to pass on at least 40% of their wealth to their grandchildren, emphasising the intergenerational wealth transfer aspect. On the other hand, grandparents who are still employed or semi-retired (36%) are more inclined to pass on 50% to 90% of their wealth to their grandchildren.
Motivations for Wealth Transfer.
The report reveals that the primary motivators for wealth transfer are a desire to set up their children or grandchildren for the future (55%), ensuring they do not face financial hardships (46%), and altruism in wanting to give back to their descendants (42%). This altruistic outlook highlights the significant role grandparents play in securing the financial future of their loved ones.
Education Bonds: A path to securing the future.
The importance of bridging the gap between intent and reality when it comes to grandparents transferring their wealth presents an opportunity for Financial Advisers.
To address this unmet need, the Futurity Bond has been designed to help grandparents to tax-effectively save and invest for education while delivering unrivalled flexibility.
With a Futurity Bond, grandparents can:
- Access their capital at any time for any purpose, tax free
Appoint up to 10 Beneficiaries in the one Bond
Take advantage of the Bond Guardian feature
Use the future activated transfer feature to deliver estate planning certainty
Access unique tax benefits including the Education Tax Benefit, which provides an additional $30 for every $70 withdrawn from the Bond's earnings and offer various tax-free avenues.
In a world where education is the key to unlocking future success, grandparents are stepping up to ensure their grandchildren have every opportunity to thrive. Financial Advisers can play a vital role in helping grandparents navigate the intricacies of wealth transfer and investment, enabling them to provide the best possible education and financial future for their loved ones.
One Bond, endless possibilities. Designed for the future.
Access a handy infographic to share with your clients, here.