The 'Bank of Family'

Back to News & Views

A £38 billion lifeline for modern parents

In the challenging realm of parenting, an unexpected yet invaluable source of support has emerged – our parents and grandparents. Over the past 12 months, almost 42% of these seasoned family members, affectionately termed the 'Bank of Family', have assisted younger relatives with childcare. 

Their dedication is significant, investing nearly a full working day (almost nine hours) each week in caring for their grandchildren. What is this aid's estimated value? A hefty £38 billion annually, as unveiled by recent research[1].

Balancing work and family, the role of elders

The latest statistics from the Office for National Statistics reveal that in 50% of working families, both parents are occupied full-time[2]. Striking a balance between professional commitments and parental duties is no mean feat, compelling many to seek help from their extended family. 

Approximately 42% of parents and grandparents aged 55 and above have risen to this call, offering unpaid childcare over the past year. This help translates to roughly nine hours each week spent caring for children or grandchildren – a contribution valued at around £5,400 annually.

Beyond financial aid is the gift of time

However, the 'Bank of Family' offers more than just childcare; it provides various forms of 'soft support' beyond financial gifts. The study found that over a third (31.1%) of parents and grandparents invited adult children back home to assist them in saving a deposit for their own place, circumventing an estimated £24,900 in outgoings. 

Contrary to common belief, the 'Bank of Family' is about more than just financial support. As the research identified, people rely on their parents and sometimes wider family for many things – including the priceless gift of time.

Retirement and family obligations are a delicate balance

The recent childcare reforms introduced to assist families are a commendable initiative. These changes aim to ease the financial and logistical burdens associated with raising children, particularly for working parents. However, many individuals continue to rely on their parents to bridge the childcare gap, enabling them to maintain their employment commitments.

This reliance on grandparents can create a complex dynamic as these individuals often navigate their own challenges associated with retirement. Retirement is a period that requires careful financial planning and adjustments to a new lifestyle. When the added responsibility of providing childcare support is thrust upon them, managing these dual responsibilities effectively can be an uphill task. Moreover, the current cost of living crisis has amplified financial pressures on all fronts.

Want to discuss prioritising your needs and wellbeing?

For those parents and grandparents who find themselves providing supplementary support, it's essential to navigate this role with care to ensure that it remains manageable in the long term. It's important to remember that while supporting their loved ones is admirable, they must also prioritise their needs and wellbeing. Please get in touch with us if you would like to discuss your financial situation or requirements.

Source data:

[1] Unless otherwise specified, all figures in the release are drawn from Legal & General’s 2023 ‘Bank of Family’ research.

[2] Office for National Statistics – Families and the labour market, UK: 2021.


Book your FREE, no obligation discussion today. Schedule Appointment

Sign Up to our mailing list - Receive regular news, tips and financial commentary from the Gemini Team.

Latest News

  • In the ever-evolving landscape of retirement planning, a significant shift is on the horizon that could potentially impact when you can access your pension funds. The normal minimum pension age (NMPA), or the age at which you can start withdrawing from your pension savings, is currently set at 55. [...]

  • In today’s fast-paced world, the concept of retirement often takes a back seat. For many, it remains a distant reality, mired by uncertainties and apprehensions. However, planning for retirement is an essential aspect of financial planning, which warrants attention from an early age. [...]

  • The challenge of managing bills and other financial obligations while simultaneously saving for a pension may seem daunting. However, it is certainly achievable with the right planning and timely action. The sooner you start, the more advantageous it could be if you contribute to a defined contribution pension. [...]

  • Significant life changes, such as getting married, having a baby and buying a property, are key times to consider protecting your family’s future. Life insurance assures that your loved ones won't face financial stress in your absence and this peace of mind is not confined to those earning an income. [...]

  • Recent studies indicate that approximately half (49%) of non-retired Britons plan to extend their working lives beyond the age at which they'll receive their State Pension[1], equivalent to approximately 19.2 million individuals[2]. [...]

  • The world of financial markets is a fascinating and ever-changing landscape. Much like the weather, the climate of these markets can shift rapidly. One moment, everything might be calm and sunny, with investors full of optimism and bullish about the future. Then, a storm may roll in the next moment, causing the same investors to scramble for cover and reassess their strategies. [...]

  • In the unfortunate event of one’s passing, there’s a possibility that HM Revenue & Customs (HMRC) may levy an Inheritance Tax (IHT) bill on the deceased’s estate. The estate’s total value determines the sum due after deducting any debts and applying all possible thresholds. Two thresholds that come into play are the nil rate band (NRB) and the residence nil rate band (RNRB). [...]

  • Navigating the world of pensions can be challenging, particularly when you’ve participated in various schemes or shifted jobs throughout your working life. Pension plans may close, merge or change names as time progresses, adding to the complexity. It might have been rebranded even if you recall your scheme’s original name. [...]

  • 2 weeks ago

    A recent study has identified an alarming discrepancy in financial confidence between genders. It shows that women are 33% more likely to confess to a lack of understanding about their pension operations[1]. This gap in comprehension could be a potential reason why some women seem less inclined to engage with pivotal financial products that promise better future outcomes. [...]

  • The dream of early retirement is alive and well among the younger generation. Still, to realise this dream, they must prepare to bolster their pension savings by an estimated 15%. A recent study has revealed that approximately one-fifth (17%) of youthful savers aged between 22 and 32 aspire to retire before reaching 60. Intriguingly, 70% anticipate retiring before the present State Pension age of 67[1]. [...]

  • Living a healthy lifestyle over a prolonged period significantly reduces the risk of developing various diseases as we age. This concept is rooted in the idea that our daily habits and behaviours profoundly impact our long-term health outcomes. [...]

  • Securing your family’s financial future is a multifaceted responsibility beyond merely accumulating savings and making long-term investments. It encompasses the creation of a comprehensive plan that ensures the wellbeing of your loved ones, even in the face of unexpected adversities. [...]

Gemini Wealth Management Ltd is Authorised and regulated by The Financial Conduct Authority Registered in England & Wales No. 5919877 Registered Office: Gemini House, 71 Park Road, Sutton Coldfield, West Midlands B73 6BT The Financial Conduct Authority does not regulate tax and trust advice, will writing and some forms of buy to let mortgages. The guidance and/or advice contained in this website is subject to regulatory regime and is therefore restricted to those based in the UK.

Website by Mellow Marsh Software
© Gemini Wealth Management Ltd
Important Documents | Cookie Policy