Recent research shows that millions of Brits are relying on their inheritance to provide them with financial security, with this anticipated cash windfall often playing a key part in their retirement plans.
One in three working Brits say that they are reliant on their inheritance for future stability, with one in five saying they won’t be able to comfortably retire without it. Paying off their mortgage and clearing other outstanding debts are the most common planned uses for an inheritance, according to the report.
However, those who are relying on their inheritance could be in for a shock, as the number of people leaving significant amounts to the younger generation is falling. Over a quarter (28%) of retirees do not expect to leave much to their children; a fifth say they intend to spend their money enjoying their retirement and 4% say they will leave it to charity.
Without the help of an inheritance many working people admit that they would be unprepared for their retirement, with a quarter saying that they will have to work longer than planned should they not receive such windfall.
Tom Curran, Chief Executive at Kings Court Trust, said: “Due to the increase in life expectancy, many people are experiencing a longer retirement than they may have planned for. These figures highlight how important it is to plan ahead to ensure you are prepared for your later years. We would encourage people approaching retirement to seek professional advice on how best to plan for their future so they aren’t shocked by the realities of their financial position when it is too late.”
Kings Court Trust offers a comprehensive estate administration service for a guaranteed fixed price. For more information on our services or if you have any questions relating to the estate administration process, contact our client services team on 0300 303 9000.