21st August 2015
Inheriting money is no longer a given as parents and children engage in a tug-of-war over who will support who financially.
Research from SunLife shows that one in six people are relying on inheritance from their parents but the same figure, one in six, of retirees are looking to their children to support them in their old age.
Furthermore, 10% of grown-up children are relying on this inheritance so much they believe their parents are blowing too much of it.
As a percentage of income, older people are better off than younger generations with those aged 55-to-70 spending less than half, 46%, of their income on fixed costs, compared to 57% of 18-to-24 year olds.
The figure is 53% for 25-to-44 year olds and 41% for 45-to-55 year olds.
Ian Atkinson of SunLife said younger people should not rely on receiving an inheritance.
‘Long gone are the days when pensioners spent their retirement doing crosswords and gardening, nowadays, the over 60s are just as likely to be skiing as sewing,’ he said.
‘Research by Saga found that among those aged between 65 and 74, spending on travel increased by 93% between 2002 and 2012 and this is clearly bothering some people, with one in ten complaining that their parents are having too much fun with their ‘inheritance’.
‘Furthermore, recent research has warned that middle-aged people can no longer rely on an inheritance as they will be almost retired before they receive any money. By assuming we will get financial support from our families rather than making financial plans of our own, many of us are leaving our financial futures uncertain.’