Deep cuts loom at Bank of Granny and Grandpa

PENSIONERS are being forced to cut back on financial support for children and grandchildren as living costs remain high, despite fears of a looming Budget tax raid on gifting for inheritance tax (IHT) purposes.

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New research from Quilter, the wealth manager, shows one in six retirees now plans to reduce the gifts they give to younger relatives.

The average retiree currently spends more than £2,500 a year on younger family members, while wealthier pensioners can give up to £5,000 in gifts and another £5,000 on education.