According to a new survey*, the majority of Brits ‘expect’ to receive inheritance from their parents – but in reality four in 10 won’t get a penny. The findings emerged in a study of 2,000 adults, and show that while 75% of people aged 20 to 35 hope to receive a windfall when their parents pass away, they look set to be disappointed
In fact, the average person assumes they’ll get in the region of £78,000 when mum and dad pass on, so are in for quite a shock.
A fifth of children over the age of 20 are hoping their parents’ wealth will sort out all of their money problems, and have completely shelved all financial plans for the future as a result.
It seems that 49% of parents aged 50 and over have already had to dip into their savings to get by, and four in 10 have already been giving their children hand-outs to help them with college fees, driving lessons and rent payments.
Should our children expect to inherit from us?
So should our children really expect to inherit from us- especially as we are all living longer?
Is it a high risk strategy for people to be resting their financial hopes on estimating their parents’ wealth – and then assuming it will all be coming their way?
Are you one of the many parents seeing your child struggling now, and so helping out- impacting any future inheritance there may have been?
The study shows that 68% of kids expect to inherit their parent’s house when they pass away, while 32% think they’ll get the car.
67% are convinced they’ll receive a cash injection, and as such, 54% aren’t making any financial plans for a comfortable retirement.
Indeed, a fifth of those polled are counting on their parent’s inheritance to help them get out of debt, while the same percentage hope they’ll finally be able to step foot on the property ladder.
A quarter of people aged 20 to 35 hope they’ll be able to pay off the mortgage with some inheritance, and 15% are banking on having it to put their own children through university.
Paying off student and car loans, helping their own children with a house or car and holidays are just some of the other ways kids intend to spend their inheritance – if they were to get any.
But as the statistics show, seven in 10 adults aged 50 and over think savings are better spent now, as and when the family needs it.
What are your thoughts on this – should an inheritance be expected, and should our children be anticipating and planning for one?
*Survey conducted by Skipton Building Society
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