Sunday, October 2, 2022
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2 in 5 banking on inheritance to fund retirement

Two in 5 Britons who anticipate an inheritance stated they wanted the cash to fund their retirement, in line with new analysis.

A couple of in 4 Britons (38%) anticipate an inheritance, or have already obtained one, in line with the research from Hargreaves Lansdown.

The research discovered that the proportion of these counting on an inheritance peaked within the years earlier than retirement (55-64), with 45% of that age group counting on one.

Half of oldsters with kids dwelling at dwelling (47%) stated they wanted an inheritance to assist present a good revenue in retirement.

Ladies have been additionally extra more likely to want a windfall for his or her retirement revenue.

Helen Morrissey, senior pension finance analyst at Hargreaves Lansdown, stated: “An inheritance can play a job in retirement planning, however you want to think about it fastidiously. Your important bills ought to be lined no matter whether or not or not you get an inheritance – this will come from a mix of state pension, office and private pensions in addition to another investments.

“Any inheritance ought to assist pay for the extras to make life extra comfy – or provide the life-style you need in retirement. In case your pension financial savings will fall quick with out an inheritance, you want a strong plan B you’re ready to make use of.

“If an inheritance is more likely to play some half in your retirement revenue, you want to be as certain as you will be that you simply’ll really get one. It could really feel like a difficult dialog to have along with your family members, however you’ll be able to’t base planning on a imprecise assumption and crossed fingers. Lifetime items is also extra tax-efficient.”

• Opinium surveyed 2,000 Britons in April on behalf of Hargreaves Lansdown.



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