UK Adults Over Anticipate Inheritance

24/10/2019

Adults in the UK expect to receive an inheritance of over £130,000 from their parents, with those aged 18-34 hoping for more than £150,000. However, more than half (57%) of UK adults don’t expect to receive any inheritance whatsoever, according to research from retirement specialist Just Group.

The research finds that UK adults expect to receive an inheritance windfall of £132,000, on average, with many relying on the cash to take their first steps on the property ladder.

But the reality could be a big shock as ONS figures suggest the median inheritance passed down by parents in the last two years is much less, at £30,000.

Stephen Lowe, group communications director at Just Group, believes the disparity between expectation and reality highlights the importance for families to find ways to discuss their financial situation and the realities facing them in later life.

“The rise in house prices over the last few decades seem to have left younger people pinning their hopes on receiving an inheritance windfall to help them join the property market, but the mismatch in expectation versus past reality may leave many people disappointed.

As people live longer, they will need to fund more years of retirement – which may include paying for social care. So, it’s surprising that people are quite so confident in the size of inheritances they expect to receive.

Families tend not to talk about money and death. But if we don’t talk about these themes it becomes very hard to make practical plans – be that getting onto the property ladder or preparing for care in later life. It might not feel comfortable to broach these subjects but it’s better than misunderstandings and disappointments later. It really is good to talk.”

The clear message from this research, is that receiving a sizeable inheritance lump sum cannot be relied upon to plan your financial future. More important than waiting for an inheritance (which is not guaranteed) is to have your own financial plan in place for yourself and your family.

There are lots of reasons why money might not be passed on, from families not getting on to retirees not having enough to leave. A quarter of retirees say the younger generation should not rely on an inheritance and need to make their own way in the world.

Written by Colin Caulfield | Director

Colin is a Chartered Financial Planner & Pension Adviser Of the Year Read more >>

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