2022
9
UK Intergenerational Family Finances Market Report 2022
2022-07-06T04:04:07+01:00
OX1102999
2195
152717
[{"name":"Parents and Family","url":"https:\/\/store.mintel.com\/industries\/life-stages\/parents-family"},{"name":"Personal Finance","url":"https:\/\/store.mintel.com\/industries\/finance\/personal-finance"}]
Report
en_GB
“Amid a challenging economic climate and a demographic shift, intergenerational support and financial planning between family members from different generations will become more important. While there is an extensive desire…

UK Intergenerational Family Finances Market Report 2022

£ 2,195 (Excl.Tax)

Description

Key Topics Discussed in Full Report

  • The demographic and economic context to intergenerational finances.
  • Financial education at home.
  • Comfort level discussing different aspects of family finances.
  • Type and value of financial help received by adult children.
  • Intergenerational financial planning.
  • Attitudes and behaviours towards intergenerational family finances.

Expert Insights from a Mintel Analyst

This report, written by Stefania Apostol, a leading research analyst, delivers in-depth commentary and analysis to highlight trends in the family finances market and add expert context to the numbers.

Amid a challenging economic climate and a demographic shift, intergenerational support and financial planning between family members from different generations will become more important. While there is an extensive desire for intergenerational financial support, planning and actually having these discussions is much less evident. This culture of avoidance means that many people postpone and often fail have these important conversations at all, leading to poorer outcomes and potentially creating more family stress when decisions have to be made.”

Stefania Apostol - Financial Services Analyst

Stefania Apostol
Financial Services Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Market context
  2. Executive Summary

    • Demographic context
    • UK’s population is ageing
      • Figure 1: UK population projections, by age, 2020-50
    • People are staying in the workforce for longer
      • Figure 2: UK employment rates of all genders, by age bands over time, 1991-2021
    • More young adults are living with their parents for longer
      • Figure 3: Young adults aged 15-34 living with their parents in the UK, 2001-21
    • Economic context
    • Real wages drop as inflation rises
      • Figure 4: Nominal and real average earnings single-month annual growth rates in Great Britain, seasonally adjusted, and CPIH annual rate, 2001-22
    • Inflation is expected to reach 10% in 2022 …
      • Figure 5: CPI and CPIH, 12-months rates, 2016-22
    • … intensifying the pressure on household finances
      • Figure 6: Household financial wellbeing index, 2019-22
    • The consumer
    • The majority of adults think their parents were good financial role models
      • Figure 7: Parents or guardians as role model regarding financial education, 2022
    • Discussing family finances remains a taboo subject but attitudes are changing
      • Figure 8: Activities done by parents or guardians, 2022
    • Most parents feel comfortable about lending money to their children
      • Figure 9: Parents’ and guardians’ level of comfort discussing aspects of family finances, 2022
    • 68% of adult children would be comfortable asking their parents for financial advice
      • Figure 10: Children’s level of comfort discussing aspects of family finances, 2022
    • 79% of Gen Z has received financial help from older generations in the last two years
      • Figure 11: Financial help received from older generations, 2022
    • More than half of adults with children or grandchildren have a will but only a third have discussed their plans
      • Figure 12: Intergenerational financial planning, 2022
    • Extensive desire for intergenerational financial support
      • Figure 13: Attitudes and behaviours towards intergenerational family finances, 2022
  3. Issues and Insights

    • Challenging times bring to the fore the importance of intergenerational support
    • Most young adults are getting financial support from parents
  4. Demographic Context

    • UK’s population is ageing
      • Figure 14: UK population projections, by age, 2020-50
    • Life expectancy is set to increase
      • Figure 15: Life expectancy at birth for males and females, UK, between 1980 to 1982 and 2018 to 2020
    • People are staying in the workforce for longer
      • Figure 16: UK employment rates of all genders, by age bands over time, 1991-2021
    • There’s a significant generational gap in wealth …
      • Figure 17: Value of savings and investments, by age groups, 2022
    • … and home ownership
      • Figure 18: Housing situation, by age groups, 2022
    • More young adults are living with their parents for longer
      • Figure 19: Young adults aged 15-34 living with their parents in the UK, 2001-21
    • People are delaying parenthood
      • Figure 20: Standardised mean age of mothers and fathers at birth of child, England and Wales, 1990-2020
  5. Economic Context

    • The conflict in Ukraine will hurt the UK economy
      • Figure 21: Impact of the Ukraine conflict in the UK, 2022
    • Employment has held up better than expected …
      • Figure 22: Average quarterly unemployment rate, 2016-22
    • … but economic inactivity remains above pre-pandemic levels
      • Figure 23: Economic inactivity, by age groups, 2020-22
    • Real wages drop as inflation rises
      • Figure 24: Nominal and real average earnings single-month annual growth rates in Great Britain, seasonally adjusted, and CPIH annual rate, 2001-22
    • Inflation is expected to reach 10%
      • Figure 25: CPI and CPIH, 12-months rates, 2016-22
    • Fuel and heating costs are worrying people
      • Figure 26: Consumer concerns about household finances, 2021-22
    • Over-65s are concerned about the end of the pension triple lock
      • Figure 27: Consumer concerns about household finances, by age groups, 2022
    • Consumers’ financial wellbeing deteriorates …
      • Figure 28: Household financial wellbeing index, 2019-22
    • … but remains strong among over-65s
      • Figure 29: How respondents would describe their financial situation, by age, 2022
  6. Financial Education at Home

    • The majority of adults think their parents were good financial role models
      • Figure 30: Parents or guardians as role model regarding financial education, 2022
    • Those with healthy finances are more likely to feel their parents were good role models
      • Figure 31: Parents or guardians as role model regarding financial education, by financial situation, 2022
    • More than half of adults received pocket money in childhood
      • Figure 32: Activities done by parents or guardians, 2022
    • Discussing family finances remains a taboo subject
      • Figure 33: Openly discussed family/household finances, by generation, 2022
    • The importance of parents as positive role models
      • Figure 34: Activities done by parents or guardians regarding financial education, by parents or guardians as role models, 2022
  7. Comfort with Discussing Finances with Younger Generations

    • Most parents feel comfortable about lending money to their children …
    • … and talking to them about inheritance planning
      • Figure 35: Parents’ and guardians’ level of comfort discussing aspects of family finances, 2022
  8. Comfort with Discussing Finances with Older Generations

    • 68% of adult children would be comfortable asking their parents for financial advice
      • Figure 36: Children’s level of comfort discussing aspects of family finances, 2022
    • Younger generations are more comfortable borrowing money from parents
      • Figure 37: Level of comfort borrowing money from family/guardians in older generations, by generations, 2022
  9. Level of Financial Help from Older Generations

    • 79% of Gen Z and 65% of Millennials have received financial help from older generations
      • Figure 38: Financial help received from older generations, 2022
    • Gen Zs are more likely to receive help with day-to-day expenses …
      • Figure 39: financial help received from older generations with day-to-day expenses, by generation, 2022
    • Grandparents help with childcare costs
      • Figure 40: Financial help received from older generations with childcare/education costs, by area, 2022
    • Two thirds of adults received less than £10,000 from family
      • Figure 41: Value of financial help, 2022
    • Parents are a substantial source of financial help for house deposits
      • Figure 42: Financial help received from older generations, by value, 2022
  10. Intergenerational Financial Planning

    • 58% of adults with children or grandchildren have a will …
    • … but most are reluctant to discuss inheritance plans
      • Figure 43: Intergenerational financial planning, 2022
    • Gifting money is more likely to drive people to seek advice
      • Figure 44: Intergenerational financial planning, by intergenerational financial planning, 2022
  11. Attitudes and Behaviours towards Intergenerational Family Finances

    • Extensive desire for intergenerational financial support
    • Taxation rules around inheritance are confusing
    • 62% of parents and grandparents would like to give a living inheritance
      • Figure 45: Attitudes and behaviours towards intergenerational family finances, 2022
  12. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology

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