Nearly one in 10 (8%) say they face financial trouble without future inheritance money
New research from Gocompare.com Money has found that millions of UK adults are relying on the Bank of Mum and Dad for financial help, until their own retirement.
The survey found that 6% of British adults feel that they do not have to save for the future, as they will eventually inherit property, money or other assets. More troublingly, nearly one in 10 (8%) said that they would actually face financial difficulty if they did not inherit something from their parents.
A third (33%) expect that either they or their partner will inherit money or property of some value, with two fifths (41%) stating that their household expects to inherit more than £50,000. A quarter of those surveyed said that their household were expecting to inherit more than £100,000.
Though more than two fifths (43%) said that inheriting money would be helpful but not necessary, only one in 10 (13%) would rather their parents or in-laws spend their money on themselves than pass it on.
Matt Sanders, money spokesperson for Gocompare.com, said: “For most of us, inheriting money from our parents or grandparents is something we’d rather not think about, due to the circumstances surrounding it. But for some it seems the amount that they may inherit isn’t just an active consideration, it’s a retirement plan.
“One of the things that this research has uncovered is the lack of planning some of us are doing for the future. Only two out of five (40%) said they have been putting money aside, with just a fifth (21%) stating that they are confident that they will be financially secure in retirement.
“Though squirrelling money away for retirement may not seem like the most exciting thing to do with our hard-earned cash, especially for those for whom retirement is a long way off, it’s an important thing to consider as early as possible. We typically associate pensions and savings with older people, however making future provisions at a young age, and saving little and often over a longer period of time, is a good way to secure a financially stable future.
“Even with low interest rates, there are still some very competitive savings accounts on the market at the moment, so whether you’re an experienced saver, or dipping your toe into the market for the first time, be sure to compare the rates and conditions of lots of different accounts to help find the one that’s right for you.”
If you’re struggling to get to grips with savings, Gocompare.com has put together a savings FAQ on its website
Notes to editors:
From 18th to 19th July an online survey was conducted among 2005 randomly selected British adults age 18+ who are also Springboard United Kingdom Community members. The results have been statistically weighted according to the most current data on age, gender, region, and education from the most recent census data, to ensure the sample is representative of the entire adult population of the UK. Discrepancies in or between totals are due to rounding
*4m figure based on 8% of UK adults saying they said that they would actually face financial difficulty if they did not inherit something from their parents. According to the Mid-2012 population estimate from the Office for National Statistics (published 08/08/13) there are 50,180,000 UK adults (aged 18 and over), 8% of this is 4,014,400. Any discrepancy is due to rounding.