This question at first may seem rather crude or tasteless, but new research from Gocompare.com Money has found that millions of UK adults are relying on the Bank of Mum and Dad for financial help, until their own retirement, with nearly one in 10 (8%) of people surveyed saying they face financial trouble without future inheritance money.
The survey found that 6% of British adults feel that they do not have to save for the future, as they will eventually inherit property, money or other assets. Nearly one in 10 (8%) said that they would actually face financial difficulty if they did not inherit something from their parents.
A third (33%) expect that either they or their partner will inherit money or property of some value, with two fifths (41%) stating that their household expects to inherit more than £50,000. A quarter of those surveyed said that their household were expecting to inherit more than £100,000.
Though more than two fifths (43%) said that inheriting money would be helpful but not necessary, only one in 10 (13%) would rather their parents or in-laws spend their money on themselves than pass it on.
Matt Sanders, money spokesperson for Gocompare.com, said: “For most of us, inheriting money from our parents or grandparents is something we’d rather not think about, due to the circumstances surrounding it. But for some it seems the amount that they may inherit isn’t just an active consideration, it’s a retirement plan.
“One of the things that this research has uncovered is the lack of planning some of us are doing for the future. Only two out of five (40%) said they have been putting money aside, with just a fifth (21%) stating that they are confident that they will be financially secure in retirement.
“Though squirrelling money away for retirement may not seem like the most exciting thing to do with our hard-earned cash, especially for those for whom retirement is a long way off, it’s an important thing to consider as early as possible. We typically associate pensions and savings with older people, however making future provisions at a young age, and saving little and often over a longer period of time, is a good way to secure a financially stable future.
One key issue around reliance on inheriting wealth is providing for Inheritance Tax (IHT). We see instances where a key asset may need to be sold to fund the payment of inheritance tax. This may be something of sentimental importance, or part of a larger asset which the family has hoped to retain.
At Morrell Middleton we can help you plan for passing on your wealth, including planning to minimise inheritance tax. Please call us if you’d like to discuss on 01904 691141 or drop us a line at firstname.lastname@example.org