Retirement and the inheritance taboo

New insight from MGM Advantage reveals the plans of people thinking about retirement and inheritance. Six in 10 (60%) over 55s plan to leave an inheritance to children and grandchildren, while 13% are undecided about leaving money behind to relatives.
 
As people grow older their confidence in being able to pass on wealth increases. 50% of people aged 55-59 are currently planning to leave a nest egg to children or grandchildren, compared to 71% of people aged 75-79.
 
Regionally, the number of over 55s planning on leaving an inheritance climbs as high as 67% in Yorkshire & Humberside and falls to a low of 54% in Wales and the East Midlands. When asked how they would fund long-term care at any point in the future, 15% of the over 55s would use the nest egg they planned to leave children or grandchildren. This rises to 36% of those aged 80 or more.
 
As part of the retirement income mix, inheritance plays a small part for today's retired generations. Only 6% of retirees say they are using an inheritance lump sum as part of their pension income.
 
Andrew Tully, MGM Advantage, said: "Inheritance plays a very small part in helping retirees make ends meet, with many people planning to leave a nest egg for children or loved ones. Yet when push comes to shove, many people would need to raid their savings to fund future long-term care needs. Often families find discussing finance and inheritance a taboo subject. This does beg the question if future generations should bank on inheritance to help fund their own retirements."
 
For further information on Retirement Nation, visit retirementnation.co.uk.