Don’t Bank on Inheritance
Only 29% of the over 65s believe in leaving an inheritance, according to a new study by Sanlam Private Investments.
The report entitled 25UP, looks at how attitudes to money change over three life stages; early 20s, middle age and retirement. Over 1,000 people were studied at these phases in their lives. The results make sobering reading for anyone banking on an inheritance, as the over 65s are unlikely to leave much money to family or friends.
A key reason for this is that pensioners are too busy enjoying their money and don’t see why their life should stop. As a result of this outlook, one in five of the over 65s, rising to over half of the over 70s (52%) surveyed simply don’t believe in leaving an inheritance. Furthermore, 41% of those at retirement age think it is much more important to have money when you are older; in contrast just 7% of them feel it’s better for the young to have money.
30% of those who have reached retirement age add that a major priority is having fun with their money, this rises to 36% of those in their seventies. Indeed no other age group is as likely to say having fun is a financial priority! The oldest age group in the study are those most likely to think money is important for happiness (26%) and only 6% of the over 65s find money depressing, contrasting sharply with the 20% of those in their 20s and 16% in their 40s who reported that money depresses them.
The over 65s aren’t purely hedonists. Potential inheritances are also being depleted by costs, for instance 42% of those at retirement age say their money will be swallowed up by care bills. For others there’s just not much to spare as 28% are already helping their children with their finances and only 48% of the over 65s feel they are on track to fund their continuing retirement. Indeed, one in five of them still have to work.
That key inheritance item, the house, is also under threat as 9% at retirement age say their house is their pension and this rises to 11% of people in their middle age, suggesting there is even less likelihood of future generations inheriting a property.
Sanlam Private Investments has a range of financial advisers and services designed to help individuals create and protect their wealth. Its team advises younger people looking to develop and build their finances, right through to those at retirement age, keen to preserve what they have built up. Commenting on the research, Ian Porter, Head of Wealth Management at Sanlam Private Investments says:
“Historically the financial pressures on the middle age group have often been alleviated by a meaningful inheritance. Our study suggests that no one can assume that this trend will continue. People cannot assume that a financial bailout will eventually come. Funds are being eaten into by healthcare, financing retirement and shifting attitudes to money among the older generation. It’s more important than ever for the young and middle aged to review their finances, be proactive and make their own plans for a sound financial future. “
About the research: 1000 people were questioned through an online survey independent run by OnePoll. They were drawn from the length and breadth of the UK and reflect a mix of social groups within three clearly defined age groups: 23-27, 48-52 and 65+. This was supplemented by 75 in-depth interviews.
Disclaimer
The contents of this article are for reference purposes only and do not constitute financial or legal advice. Independent financial or legal advice should be sought in relation to any specific matter. Articles are published by us without any knowledge or notice of the circumstances in which you or anyone else may use or rely on articles or any copy of the information, guidance or documents obtained from articles. We operate and publish articles without undertaking or accepting any duty of care or responsibility for articles or their contents, services or facilities. You undertake to rely on them entirely at your own risk, and without recourse to us. No assurance of the quality of articles is given or undertaken (whether as to accuracy, completeness, fitness for any purpose, conformance to any description or sample, or otherwise), or as to the timeliness of the publication.
Latest posts by Sally - Silversurfer's Editor (see all)
- Do you like the new Jaguar rebrand? - November 21, 2024
- Christmas Decorations Masterclass: Make your own Festive Wreath, Garland and Flower Centrepieces - November 21, 2024
- Finding warmth in cold days - November 21, 2024
- Fall in love with Norfolk Hideaways - November 20, 2024
- Would you prefer a cup of tea or a gin & tonic? - November 19, 2024
