5th August 2015
Millions of Britons are relying on receiving an inheritance for their future financial stability, a new study reveals.
Nearly a third of working Brits say they are depending on inheritance to ensure their financial wellbeing in years to come.
The research also found that one in five believe they will not be able to comfortably retire without such help.
However, one in four retirees plan to leave nothing to heirs or give their cash to charity, according to the survey by retirement specialist LV=.
The most common goal for those hoping to receive an inheritance is to pay off their mortgage and clear other outstanding debts.
One in six people (16%) would use inherited funds to bolster their retirement savings.
However, the number of people leaving significant amounts to the younger generation is falling, with most people are leaving less or nothing at all.
According to LV=’s research, more than a quarter of retirees (28%) say they don’t expect to leave much to their children.
A fifth (20%) say they intend to spend their money enjoying their retirement rather than leave it behind and 4% say they will follow leave their cash to charity.
John Perks, managing director of LV= Retirement Solutions, says: “People now spend almost as long in retirement as they do in the workplace, so it’s worrying to see that many people say they are reliant on something essentially out of their control to provide them with a comfortable retirement.
“With all the everyday demands on our time, retirement planning is often at the bottom of the to-do list, but it is important that people take steps to secure themselves the lifestyle they hope for in retirement. We would encourage people approaching retirement to seek advice to get the most out of their pension savings.”