Independent Financial Life Planners Bishop's Stortford: Inequality in the family?

Thursday, 9 February 2017

Inequality in the family?

Enable’s IFA’s see many families who are concerned about he financial inequalities between the older generation and young families. The wealth gap between old and young may already be a well documented phenomenon in the UK but it could be set to grow even faster than expected say The Resolution Foundation. They are concerned that higher inflation alongside persistently low interest rates and stagnant wages are going to widen the existing inequality between retired and working-age people.

Housing is by far the over riding factor in all of this but some families are adjusting, with older members increasingly likely to raise capital to give to children and grandchildren. The average income after housing costs for those aged between 25 and 34 dipped most heavily during the financial crisis, falling to a 10-year low of £18,891 in 2012; while the average income for over-65s rose sharply and is expected to increase to £22,387 this year making it on average almost £2,000 more than young workers.

According to investment company Hargreaves Lansdown, 62pc of Millennials (born between 80s and 90s) feel they are “financially unlucky”. But “baby boomers”, (born in 50s and 60s) know how lucky they are: 72pc feel their generation has been fortunate. New records are being set for the amount of equity released from homes. Last year £2.15bn was released by 27,563 people, according to the Equity Release Council and much of this borrowing comes from owners’ desire to help family, with almost half (44pc) used to help children or grandchildren, according to provider Key Retirement.

http://www.telegraph.co.uk/money/consumer-affairs/new-family-tax-older-family-members-paying-young/

Issued by: Enable Independent Financial Life Planners •  25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.