Using equity to save money for grandchildren

1. Put down a house deposit

In January 2026, the Land Registry House Price Index shows the average price of a home in the UK was £268,421. At this level, a 10% deposit would be around £26,842, a significant sum.

With wider cost-of-living pressures and maintaining a good quality of life, saving for this deposit could take several years. With a well-timed gift, grandparents could help their grandchildren with a step up onto the property ladder.

2. Fund further education

Tuition fees are a hot topic right now with discussion around things like interest rates. Some grandparents might choose to help with tuition fees, or support with the overall living costs of moving away for university.

Helping out grandchildren could mean more time spent studying and less time worrying about financial matters.

3. Help pay for a life event

Grandparents could choose to help out with the significant life events, like a wedding. With a cash gift, your grandchildren could pay for their perfect venue, ensure the whole family can gather, or even go on their dream honeymoon.

By supporting with the costs of a wedding, they can focus on the joy of planning their special day and worry less about the price involved.

4. Contribute to their retirement plans

According to the Pensions UK Retirement Living Standards, developed by Pensions UK in partnership with Loughborough University, a couple would need around £43,900 a year to achieve a moderate standard of living in retirement. State pension income alone may not be sufficient to meet this level, meaning additional private pension income or savings are often an important consideration.

It could be an option to support your grandchildren with a boost to their pension now, giving it many years to grow before they approach their own retirement in the future.

Source: Pension UK Retirement Living Standard, 2025-retirementlivingstandards.org.uk