Will Inheritance Money Become a Thing of the Past in the UK?

With millions of people in the UK struggling to pay the essential household bills; many are unable to pay off credit cards and loans, and do not have any disposable income left to contribute to a pension or savings account.    Unfortunately this has left many households, hoping that their inheritance will eventually solve their financial difficulties.   Whilst the majority of Britons will expect to receive an inheritance -on average £78,000; the reality is that 4 out of 10 people will not get a penny.

Research conducted by Skipton Building Society found that parents are regularly dipping into their savings accounts to help their children pay fundamental bills and expenses.  With parents also likely to be facing tough financial times, and with them receiving relatively little interest on what savings they have; it is not surprising that they are unable to leave as much inheritance to their loved ones, as they may have previously hoped.

Moreover, with people living day by day to pay bills and keep a roof over their heads, it is understandable, although concerning that over half of the people surveyed had not made any financial plans for their retirement.  With State Pension age in the UK, set to rise in the future, this is quite alarming and may leave a significant financial gulf in years to come as people have to carry on working full time into their late sixties.

Whilst many parents will give their sons and daughters money to pay utility bills and the like, many will also spend much of their savings helping to pay for the cost of their children’s weddings.  Research by John Lewis Insurance showed that nearly half of respondents would expect their parents to contribute to their wedding expenses.  With the average price of a wedding in the UK costing around £15,000, this can easily chip away at the savings the bride or groom’s parents may have had kept to one side.

This infographic by MoneySuperMarket summaries some of the main statistics and facts that relate to the research conducted by Skipton Building Society and John Lewis Insurance.