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31 Aug 2017

UK adults lower their inheritance expectations

Working age adults in the UK are lowering their expectations around inheritance when planning their financial futures, according to new research.

The survey included 1,000 adults aged under 45 and 1,000 adults of pensionable age (65+), revealing that 69% of working age adults are not counting on receiving a considerable amount of inheritance when planning their financial future.

In fact, just 31% said they factor in likely inheritance when making plans for their long-term financial future.

And only a third (34%) said they are expecting their parents to leave them everything they own when they pass away.

The research was conducted by Remember A Charity, a coalition of 190 charitable organisations who encourage people to consider leaving a legacy gift in their Will once they have secured their friends and family´s future.

There are various reasons why people are curbing their expectations around their likely inheritance, including the prospect of their parents having to pay for their own care (51%), uncertainty over the government´s social care policy (35%), and rising inflation (32%). And 58% of the under-45s admitted they doubted they would be able to leave as much inheritance to their own children as they´d hoped to earlier in life.

Yet, despite their own inheritance expectations being lowered, people are still looking to the older generation to leave a legacy gift to good causes.

The average adult aged under 45 would be happy for their parents to leave up to 16% of their total estate to a charitable organisation once they had secured their family´s future. This highlights the growth of a more socially conscious younger generation, Remember A Charity said.

One in ten (9%) under-45s said they had actively encouraged their parents to consider leaving a legacy gift, and only four in ten (45%) would be comfortable with their parents not leaving any legacy and giving all of their estate to them. Notably, 5% went as far as to say they would be happy for their parents to leave 100% of their estate to charity!

The older generation still has financial concerns, however: 53% of the over-65s surveyed admitted that they still worry about their financial future. Of those who have revised down how much they will be able to leave in their Will, two thirds (67%) said the uncertainty around the government´s social care policy is the main reason. Another 47% regretted that they can´t leave their children a more secure financial future.

And, despite the encouragement of their children, this generation only feels in a position to leave an average of 5% of their estate to charitable organisations once they have secured the future of their family.

Copyright © M2 Bespoke 2017

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