Cash gifts
Part of the Life Well Spent Report 2026
Giving can make the receiver very happy, but can it increase your own happiness? What about giving bigger gifts in later life?
A quarter of over 50s have given a significant cash gift
1 in 4 over 50 year olds (26%) have given substantial cash gifts to loved ones in the last five years. That’s up 4% since 2025. These cash gifts are most commonly a special birthday or Christmas gift.
But this number rises to 30% (+3% since 2025) for the happiest over 50s, and 36% for the over 70s (+4%).
The average amount gifted by over 50s is £14,017 (an increase of £1,694 on 2025). And while 26% of those gifting do so as a special birthday or Christmas present, 28% do so to help with living costs.
Most cash gifts are given to our children
75% of gifts given by people over 50 are to their children – down 4% since 2025. 18% (+2%) of gifts are for grandchildren, and 16% (-4%) are for someone else.
Those aged 60 to 69 are most likely to leave a sizable cash gift to their children and those over 70s most likely to leave a gift for their grandchildren.
Interestingly, cash gifts do not only flow down to younger generations. 62% of people under 50 have given a significant cash gift to their parent(s) in the past five years.
Who over 50s are giving cash to:
| % of over 50s gifting | Children | Grandchildren | Parents | |
|
Help with living costs |
28% | 69% | 7% | 4% |
| As a special birthday/Christmas | 26% | 52% | 33% | 4% |
| House deposit | 20% | 82% | 14% | 1% |
| Put towards a vehicle | 18% | 85% | 8% | 1% |
| Put towards a wedding | 17% | 70% | 12% | 3% |
| Put towards a holiday | 16% | 70% | 7% | 6% |
|
Help repay debt |
13% | 72% | 2% | 9% |
| Put towards home renovations | 10% | 76% | 5% | 2% |
| Help out because of lost job/reduced income | 7% | 69% | 6% | 3% |
| Tuition/college funds | 7% | 43% | 40% | - |
| Following birth of a baby | 6% | 67% | 23% | 10% |
The biggest cash gifts are for house deposits
Once again, the biggest cash gifts given to loved ones are for house deposits. Over 50s average £32,016 as a cash gift for this reason - £1,382 above last year and £5,336 more than in 2022. That’s compared to a national average of £25,439.
20% of over 50s who gift cash do so to put towards a house deposit – up 2% since 2025. This equates to 5% of all people over 50.
The next largest cash gifts given by people over 50 are for help with tuition and college funds, with an average of £9,905 – a £4,047 increase on spend since last year. This is followed by an average of £9,081 to help to start a business (+£2,359).
28% of over 50s gifting are doing so to help loved ones with living costs, with an average gift amount of £2,102 – up £159 since 2025. This equates to 7% of all over 50s.
Average amount gifted for a house deposit
| 2022 | £26,680 |
| 2023 | £29,616 |
| 2024 | £29,033 |
| 2025 | £30,634 |
| 2026 | £32,016 |
Average amount of cash gifted by over 50s
| 2026 | 2025 | % of people gifting | |
| Deposit on home purchase | £32,016 | £30,634 | 20% (+2%) |
| Tuition/college funds | £9,905 | £5,858 | 7% (+1%) |
| Help start a business | £9,081 | £6,722 | 3% (+1%) |
| Put towards home renovations | £8,879 | £8,932 | 10% (+1%) |
| Put towards a wedding | £5,101 | £4,659 | 17% (+3%) |
| Put towards a vehicle | £4,011 | £4,348 | 18% (+2%) |
| Help repay debt | £3,396 | £2,615 | 13% (-3%) |
| Fertility treatment | £3,113 | £1,659 | 1% (+0%) |
| Help out because of lost job/reduced income | £2,801 | £2,065 | 7% (+0%) |
| Medical or care expenses | £2,173 | £1,690 | 2% (-4%) |
| Help pay for a funeral | £2,163 | n/a | 4% (n/a) |
| Help with living costs | £2,102 | £1,943 | 28% (-4%) |
| As a special birthday/Christmas gift | £1,892 | £1,835 | 26% (-7%) |
| Put towards a holiday | £1,864 | £1,419 | 16% (+1%) |
| Following birth of a baby | £1,575 | £1,833 | 6% (-2%) |
Giving cash gifts to loved ones makes us happier
74% of over 50s (down 4% since 2025) and 78% of all UK adults who give cash gifts to loved ones say doing so made them happier.
For over 50s, 9 out of 10 of those who helped with home renovations (93%) and tuition or college fees (90%) were happier. And 85% of over 50s who helped after the birth of a baby reported being happier as a result.
Gifting money to help cover medical expenses is the most likely to reduce happiness for over 50s (13%). But almost two-thirds (64%) still feel happy to have helped in this way*. For UK adults, helping others to repay debt (6%) and to help with income issues (8%) were most likely to reduce happiness, but 76% and 69% respectively still gained happiness from helping
*Low base size
Most of us would like to leave an inheritance
There's a growing trend towards wanting to leave an inheritance when we're gone, with 46% of over 50s saying they'd like to leave some money behind - up 7% since 2022. Supporting this, fewer would prefer to spend the money on their retirement, even if it means leaving nothing for their family (17% - down 10% since 2022, and down 2% since last year's report).
In fact, 9% (-1%) would consider cutting back on spending in retirement to ensure they can leave an inheritance. And 19% (+1%) want to give an early inheritance, so they can see their loved ones enjoy the cash.
Just over 1 in 5 (21%) people say they can't afford to leave their loved ones any inheritance, even if they wanted to, up 2% since 2025.
For some, equity release could be a way to offer early inheritance when loved ones really need it without having to cut back on retirement spending.
Attitudes towards inheritance
This article forms part of our Life Well Spent report, which looks at the relationship between happiness and big purchases in later life.