Baby Boomers Likely to Spend Inheritance Rather Than Save

Categories IHT, Industry News, Inheritance Tax

A new survey from High50 has found that 66% of people aged between 50 and 65 would rather spend any inheritance they receive rather than passing it on to their descendants. We were quite surprised when we came across this article on the Financial Times last week; despite benefitting from rising house prices, better healthcare and protected pensioner benefits, it seems that this generation are still keen to spend whatever they have.

The survey questioned 1,000 people from the UK aged over 50, and found that the figure rose even further – to 71% – when considering those aged between 60 and 65. Almost 25% of the respondents said they planned to leave very little or no savings to their children.

Angus Hanton, the co-founder of the Intergenerational Foundation, stated that those form this demographic are offering "little in the name of intergenerational solidarity" with their choice to spend and not pass on any wealth.

There is a concern from some experts that this mass spending by the older generation will lead to the creation of asset bubbles; Hanton noted that it could lead to the younger generations having "to pay their parents' bills three times over. However, the research found that the older generation are too preoccupied spending this money to notice. What do you think this means for future generations?