For many grandparents, one of life's greatest joys is seeing their children and grandchildren thrive. But with younger generations facing growing financial challenges and many retirees concerned about whether their savings will be enough for the years ahead, an important question is emerging: how can you help loved ones today without putting your own future at risk?
It's a conversation more families are having, particularly when it comes to helping family get on the property ladder.
The growing retirement savings challenge
While many people enjoy a comfortable retirement, there is increasing discussion around whether pension savings alone will be enough for future generations. Research from the UK Government’s Second Pensions Commission Interim Report suggests around 15 million of working-age adults are on track to miss their target retirement income, with the proportion of people undersaving expected to increase over the coming years.
Even those who feel financially secure today may have concerns about the future. Rising living costs, longer life expectancy and the possibility of needing care later in life can create uncertainty about how far retirement savings will stretch.
As a result, many people are understandably cautious about giving away money they may one day need themselves.
Why more families are turning to the "Bank of Grandma and Grandpa"
At the same time, younger adults are facing significant financial hurdles.
House prices remain high, deposits can take years to save for, and rising rental costs often make it difficult to build savings.
For many first-time buyers, support from family has become an important part of getting onto the property ladder. Average deposits have increased from £60,000 to £80,000 (Aldermore Bank First-Time Buyer Index 2026) with these growing affordability pressures resulting in an increasing reliance on family assistance.
For grandparents, many would rather see the positive impact of their support while they are around, whether that's helping a grandchild buy their first home, supporting higher education costs, or providing a financial boost when it's needed most.
Balancing generosity with financial security
This can create a difficult balancing act.
On one hand, many grandparents want to provide meaningful support to younger family members. On the other, they want the reassurance that they'll have access to funds if circumstances change in later life.
It's not simply a question of whether to help. It's about finding a way to do so while maintaining confidence in your own financial future.
Every family's circumstances are different, but it's important to consider questions such as:
- Will I still have enough money to meet my own future needs?
- Have I planned for unexpected expenses?
- What level of support feels affordable and sustainable?
- Have I explored all the options available to me?
These conversations may not always be easy, but they can help families make informed decisions together.
Could housing wealth play a role?
For many over-55s, their home is their largest asset.
While pensions and savings are often the first things people think about when planning for retirement, some homeowners also choose to consider the wealth tied up in their property as part of their wider financial planning.
Depending on individual circumstances, accessing housing wealth may be used to create additional financial flexibility, supplement retirement income, establish a contingency fund, or provide financial support to family members. Pure Retirement's market analysis indicates that gifting has become an increasingly important reason for some later life borrowers to access property wealth, particularly among older customers.
Of course, releasing equity from your home is a significant financial decision and won't be right for everyone. That's why it's important to understand the implications fully and seek professional advice before making any decisions.
Finding the right balance
Modern retirement planning is about more than funding your own future. For many, it's also about deciding how and when to share wealth with the people who matter most to you.
Whether you're thinking about helping a child or grandchild's first step onto the property ladder, or simply exploring ways to create greater financial flexibility, the key is finding a balance between generosity today and security tomorrow.
To learn more about Pure Retirement and later life lending, visit Pure Retirement's profile on Equity Release Supermarket: View Pure Retirement's profile.
As with any major financial decision, it's important to seek qualified financial advice and consider all available options before proceeding
