Bank of Mum and Dad stays open into retirement

The Bank of Mum and Dad shows little sign of shutting up shop, with more than eight in ten homeowners approaching retirement expecting to financially support adult children and grandchildren.

New research from law firm Morr & Co found 84% of pre-retirement UK homeowners aged 50-66 expect to provide financial support to younger generations during their retirement.

The study of 2,020 homeowners with an annual income of £40,000 or more found more than half (53%) definitely expect to provide support, while a further 31% believe they probably will.

The findings reveal the competing financial pressures facing those approaching retirement.

Almost three in ten (30%) said supporting their family financially was among their biggest retirement worries, while 35% were concerned about running out of money themselves and 38% cited the rising cost of living.

The expectation of helping younger generations was markedly higher among homeowners in their 50s than among those aged 60 to 66 - 86% of homeowners aged 50-54 expect to support children or grandchildren financially, compared with 77% of those aged 60-66.

Michael Charalambous, partner in the private client team at Morr & Co, said he was increasingly hearing concerns from clients about how children and grandchildren could afford major milestones, particularly buying a home and meeting education costs.

He said: “Gifting during lifetime has always formed part of wider estate planning, but increasingly the conversation is being driven by the immediate needs of children and grandchildren rather than purely by inheritance tax considerations.

“Parents and grandparents are asking how they can help fund property purchases, education costs or other significant expenses now, when the assistance may have the greatest impact.”

However, Morr & Co warned that people approaching retirement should be cautious about giving away substantial sums without considering their own long-term financial position.

Longer life expectancy, unexpected expenditure and potential later-life care costs can make it difficult to know how much someone will ultimately need.

Michael said: “The starting point should always be ensuring that parents or grandparents retain sufficient resources to meet their own needs.

“While it is entirely understandable to want to help family members, there is often a delicate balance between generosity today and maintaining financial independence in later life.”

Families should also consider the legal and tax consequences of transferring significant wealth. Selling investments or other assets to raise cash can potentially create capital gains tax liabilities, while families may also need to consider what would happen to gifted money if a recipient subsequently divorced or encountered financial difficulties.

With speculation building ahead of the first Budget under Prime Minister Andy Burnham, Michael also cautioned against making major financial decisions based on potential tax changes.

“I often tell clients not to let the tax tail wag the dog,” he said. “The risk of acting on speculation is that families may trigger unnecessary tax liabilities, incur significant costs or make arrangements that no longer suit their long-term goals.

“Good planning should be robust enough to withstand changes in legislation rather than being built around assumptions about what might happen in the future.”

For more information, please visit https://morrlaw.com/

Ends

Editors notes

Research

The research was conducted by Censuswide among a sample of 2,020 UK homeowners aged 50-66 with an annual income of £40,000 or more. Fieldwork took place between 30 July and 13 August 2026. Censuswide is a member of the Market Research Society (MRS) and the British Polling Council (BPC), and a signatory of the Global Data Quality Pledge.

About Morr & Co

Morr & Co is a leading law firm with offices across Surrey, Hampshire and London, offering expert legal services to individuals, families and businesses throughout the UK.

With roots dating back to 1729, the award-winning firm combines centuries of legal heritage with a modern client-focused approach, operating across seven offices in Farnborough, Fleet, Guildford, Oxted, Redhill, Teddington and Wimbledon.

Known for its commitment to excellence, empathy and strategic insight, Morr & Co’s 150 strong team supports clients across corporate and commercial, commercial property, dispute resolution, employment, court of protection, family law, medical negligence, personal injury, private client and residential property.

For more information, please visit https://morrlaw.com/