Over 50s cutting back in order to leave an inheritance

Published by Rachel Lacey on 03 October 2017.
Last updated on 12 October 2017

Over 50s cutting back in order to leave an inheritance

Older people are spending less on themselves in order to leave an inheritance for the younger generation, according to the latest research from Saga Money.

The survey found that 80% of over 50s want to pass money on to their children when they die, with just under half so concerned about leaving a nest egg that they are prepared to forgo treats and luxuries for themselves.

Yet despite the older generation wanting to pass on their wealth, eight in 10 children would prefer their parents to spend their savings on themselves and make the most of their retirement.

Londoners had the strongest urge to leave an inheritance at 63%, while residents of the East Midlands were most likely to need an inheritance. But one in five say that their future finances are dependent upon them receiving an inheritance, compared to a national average of one in seven.

Only a quarter of retirees nationally said they would spend all their money to maximise their lifestyle in retirement and only a third did not think they would have enough money to leave an inheritance.

In addition to leaving money to family when they die, Saga Money, found that 40% of over 50s want to leave financial gifts to loved ones while they are still alive by helping out with house deposits or weddings costs.

Alex Edmans, head of the Saga Equity Release Advice Service, says the results highlight how important it is for families to talk about money: “Inheritance can be an emotive issue therefore it is important for parents to discuss inheritance with their children, but they should not feel obliged to leave an inheritance. 

“For those who would like to leave something behind they should realistically consider how best to use the money they have to make sure they have enough to fulfil their retirement goals and have something left for later life care, as well as what to leave for their children.”

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if myself and my wife were to

if myself and my wife were to die today our 3 children would be very wealthy, when we do die they will be very welcome to what ever is left, but if it's all gone so be it, it's no ones god given right to an inheritance.

The help to buy isa only

The help to buy isa only applies to properties up to £250K, a fact often not mentioned in articles like this. This can be resrtictive in more expensive areas and also restrict the type of property available

Moneywise seems to imply that

Moneywise seems to imply that forgoing treats and luxuries is an alien attitude, but a high proportion of over 50s generation grew up in the post-war years when commitments and other duties were considered to have a greater priority than treats and luxuries, so one got on with life without recourse to luxuries which were not a regarded as a necessity for contentment with life. That resilience remains a factor in that generation's later years, so "forgoing treats and luxuries" for the sake of "leaving a nest egg" is not of any significance.