Over 50s are spending the kids’ inheritance
One in five over-50s have said there’s less in the pot than they’d hoped for their dependents according to a new Co-op study, despite 20 million adults banking on receiving an average inheritance of £147,000.
The study revealed an inheritance gap between what UK adults are expecting to inherit, verses what their friends and families are intending to leave.
A third (35%) of over-50s said this was due to them retiring earlier than they’d planned and having to depend on the money. Furthermore, a tenth (12%) said whilst they haven’t yet used the money, they’re anticipating it will go towards care costs for themselves or their partner.
For two fifths, (38%) of over-50s, they’re putting themselves first and stating that their loved ones will get what’s left, after they’ve had a good time. A significant 60% plan to go travelling, 40% will use it for home improvements, while 24% said they will spend their cash on a new or classic car.
Already spent it
Meanwhile, two fifths (41%) of UK adults have already mentally spent their inheritance – despite the fact they may not receive it, with one in three planning to put it aside for their children and grandchildren, one in four saying they’ll pay off debt and a further one in four hoping to splash it on a holiday.
One in five plan to make home improvements, while one in five would use it to buy their first home.
When asked how they would feel if their loved ones spent their expected inheritance ahead of them receiving it, a quarter (24%) said they’d feel their loved ones made a ‘bad decision’ and ‘wasted’ the money, while a fifth (20%) said they’d be worried for the future.
James Antoniou, head of wills at Co-op Legal Services commented: “With people working longer, it’s understandable that they do want to enjoy themselves in later life. It’s interesting however that there is such a gap in terms of what adults in the UK are expecting to inherit from loved ones, verses what they are likely to receive. This highlights that there is often a breakdown in communication when it comes to later life planning.
“For those who are keen to leave something for their loved ones and make sure their wishes are clear, it’s vital that they put a legally effective will in place. Having an open conversation about what people own and the contents of their will with loved ones can also manage their expectations and help avoid disappointment, and possible disputes, after they’ve passed away.”