E28: The Bank of Mum and Dad - what’s the impact on your pension? With Mark Bogard, Timi Merriman-Johnson and Becky O’Connor

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For many young people, the only way to afford university or to get a foot on the property ladder is with financial support from family members. According to a report by The Institute for Fiscal Studies (IFS), almost a third of young people receive at least one transfer during their 20s and early 30s - most commonly from a parent.

 

This month on The Pension Confident Podcast we’re discussing the hot topic of ‘the Bank of Mum and Dad’. Join our host, Philippa Lamb, and our expert panel as they discuss how to talk about money with family, setting healthy boundaries, and strategies for safeguarding your financial future.

• CEO of The Family Building Society; Mark Bogard;
• Personal Finance Expert and Founder of Mr MoneyJar; Timi Merriman-Johnson; and
• PensionBee’s Director (VP) Public Affairs; Becky O’Connor.

 

Episode Breakdown:

01:46 The Bank of Mum and Dad in practice.

05:10 Planning for predictable financial support.

08:13 Helping financially while your child’s studying.

10:43 Funding your child’s big adult milestones.

14:14 Implications of dipping into your savings.

17:31 Ongoing bankrolling and protecting your financial security.

20:35 Treating children equally or equitably?

22:55 Making sure you’re on the same page.

24:51 A living versus willed inheritance.

 

Further reading:

To learn more about financial relationships with family, check out these articles and podcasts from PensionBee:

• Episode 28 transcript
• 5 tips for parents paying for university
• 7 of the best ways of giving money to grandchildren
• E8: How to teach kids about money - with Laura Miller, Will Carmichael and Emma Maslin
• How the Bank of Mum and Dad can boost an adult child’s pension by over £300,000
• How to teach kids about money
• Inheritance Tax guide
• Pension decumulation aka planning how to spend my pension savings
• Should I teach my children about money?
• Writing a will
• Your guide to Lifetime ISAs (LISAs) and pensions

 

Other useful resources:

• Boomerang Children: Meaning, Impact, Around the World (Investopedia)
• How important is the Bank of Mum and Dad? (The Institute for Fiscal Studies)
• How Inheritance Tax works (Gov.uk)
• How to run the Bank of Mum and Dad…The Definitive Guide (Family Building Society)
• Joint Borrower Sole Proprietor mortgages (Family Building Society)
• More adults living with their parents (Office for National Statistics)
• Retirement Living Standards (Pensions and Lifetime Savings Association)
• The bank of Grandma and Grandad (SAGA)
• The Carer’s Pension Gap (PensionBee)
• Who gives wealth transfers to whom and when? Patterns in the giving and receiving of lifetime gifts and loans (The Institute for Fiscal Studies)

 

Catch up on the latest news, read our transcripts or watch on YouTube:

• The Pension Confident Podcast
• The Pension Confident Podcast on YouTube

 

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Follow the Family Building Society (@FamilyBSoc) on X, Facebook and LinkedIn.

Follow Timi (@mrmoneyjar) on X, Instagram, TikTok, Facebook and LinkedIn.