| 12% of HNWI’s are financially supporting both children and ageing parents | Many dip into pensions or restructure finances to fund family gifts | Balancing generosity with personal financial security is essential for long-term freedom |
The ‘Bank of Mum and Dad’ (BOMAD) is well known to many aspiring or recent house buyers – but have you heard of BOSAD?
New research1 has found that, as well as supporting their own children, one in eight high earners are also taking on the role of ‘Bank of Son and Daughter’ to support their parents through rising costs and financial pressures.
Both BOMAD and BOSAD
The research reveals the interesting evolution of wealth through some families. As well as 73% of high-net-worth individuals (HNWIs) who financially support adult children, some 68% have helped their ageing parents or grandparents. Sandwiched in the middle, 12% of HNWIs are financially supporting both generations at the same time.
Prioritising number one?
By making average gifts of £7,500 per year, many kind-hearted family members are helping parents or children who might otherwise struggle with rising costs. However, this generosity can come at the expense of their own financial goals.
More than one in seven HNWIs have had to restructure their finances in order to finance their gifting, while one in eight have even dipped into their own pension savings. Meanwhile, three in 10 have had to sell or use investments and 18% say they have cut back on lifestyle spending to support others.
Getting the balance right
Helping family members meet their financial challenges without compromising your own financial future is a tricky tightrope to walk. To maximise your support for loves ones, while ensuring your own financial security, get in touch; we can talk through the various scenarios.
1Saltus Wealth Index, 2025
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice and certain forms of estate planning.
