In response to Legal and General’s research showing the so-called Bank of Mum and Dad (BoMaD) contributed £6.3bn to help their children get on the housing ladder, Helen Morrissey, pension specialist at Royal London, said:
“While it is natural that parents want to help their children get on the housing ladder it must not be at the expense of their own financial security in retirement. Financial circumstances can change quickly and parents must take advice before lending money to their offspring on whether they can genuinely afford to manage without this money over the long term.”
Notes to Editors
In 2017 Royal London wrote a Good With Your Money guide highlighting the key issues parents need to consider before becoming the Bank of Mum and Dad. The guide can be found here.
About Royal London:
Royal London is the largest mutual life insurance, pensions and investment company in the UK, with assets under management of £139 billion, 8.6 million policies in force and 4,348 employees. Figures quoted are as at 30 June 2020.