THE recently-launched report, A Helping Hand for the Next Generation, is the final part of three guides produced by Brewin Dolphin following a major research project in association with the Centre for Economics and Business Research (CEBR) think tank.

It incorporates a substantial 11,000-person, nationally representative survey.

The previous research reports, ‘Mind the Generation Gap’ and ‘The Big Squeeze’ , explore in more detail the financial pressures facing the modern family.

They offer more tips on clarifying priorities and creating a financial plan that can secure your family’s financial future – whatever stage of life you are at.

Mind the Generation Gap

You’re in a strong financial position, but worried about unknown future costs like long-term care and inheritance tax.

Your children could well be successful, but university debt and sky-high property prices are making life harder for them than it was for you.

On average, 18-44 year olds think that an income in retirement of £30,000 per year in today’s prices would be sufficient to afford them a comfortable lifestyle (£22,000 personal pension and circa £8,000 state pension).

However, they would need a personal pension pot of £725,000 to buy an annuity at prevailing rates to provide that level of income.

Only a small percentage of people have thought beyond one-off gifting with their inheritance planning.

A huge difference could be made by making regular contributions to a grandchild now, via a JISA or pension.

The potential long term investment growth, the effect of compounding and the IHT savings from this approach means that one silver pound gifted and invested today, could be worth three times as much to grandchildren later on.

The Big Squeeze

You’ve worked hard for many years, established a career and your children are growing up fast. You may be at or near your earnings peak and probably enjoying a better quality of life than ever before.

But, you still feel under financial pressure.

That’s because you feel squeezed by the need to support your children and meet the financial needs of your parents.

Sound familiar?

Then you have joined the sandwich generation and that means you face some tough decisions.

How can you fund your children’s’ education? How can you ensure they are not overly burdened with university debts as they start their careers and set up home?

Are your parents financially secure and should you be talking to them about long-term care? If there is an inheritance, what is the most efficient way to pass it down the generations?

A Helping Hand for the Next Generation

Millennials are struggling with more university debt than any generation to date.

At the same time, rising house prices and living costs have made it increasingly difficult for them to get on to the housing ladder.

Nearly a third of 18-to-34-year-olds are living with their parents.

Even highly-paid professionals in their 20s and 30s are finding themselves trapped in rental limbo.

Given their lack of savings, and without a home of their own, the future for millennials can appear bleak.

However a solution to the millennials’ financial woes may be closer to home than they think.

A one-off gift from a grandparent can transform a millennials’ life, giving them the financial leg up that they so desperately need.

Many grandparents will have already considered supporting their family financially by leaving an inheritance at death.

But, millennials need help now.

If they can afford it, older people should consider gifting wealth while they are still alive.

It’s Time to Get a Better Understanding

At Brewin Dolphin our experts can work with you and your family to develop tailor-made financial plans that make the most of your pensions, savings and other investments.

More than 250 years of working with families has taught us families that do best are the ones that plan ahead – not just individually but collectively.

We will do the hard work, building a financial action plan to ensure you and your family have the security you need today and in the future.

There is no way of knowing for sure what will happen, but having a plan will help put things in perspective.

Understand tomorrow, and you can enjoy today.

For further advice on planning for your own and your family’s future, or to download the Brewin Dolphin Family Wealth Reports, visit brewin.co.uk

Neil McLoram works in business development at wealth management firm Brewin Dolphin, based in Newcastle.

The opinions expressed in this article are not necessarily the views held throughout Brewin Dolphin. No director, representative or employee of Brewin Dolphin accepts liability for any direct or consequential loss arising from the use of this document or its contents. Any tax allowances or thresholds mentioned are based on personal circumstances and current legislation which is subject to change. The information contained in the Brewin Dolphin Family Wealth Report is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness. The value of investments can fall and you may get back less than you invested. The information is for illustrative purposes only and is not intended as investment advice.