New research has revealed that the over-50s are choosing to cut back on personal spending so they can build an inheritance pot for their loved ones. However, their children don’t share this view and would rather their parents spent their money on themselves during retirement instead of leaving it behind.
The study, by Saga Money, found that as many as four in five parents are concerned about leaving an inheritance for their children, while over eight in ten children want their parents to spend their money.
These contrasting views highlight how important it is for families to discuss inheritance openly and honestly, says Saga, especially if parents and grandparents are cutting back needlessly on essentials.
The study found that property is the biggest asset that forms part of inheritance - seven out of ten parents said the bulk of the inheritance they leave to their children will come from their home, rising to three quarters of those aged 50 or over. Almost half of parents say that savings will form a big chunk of their children’s inheritance.
“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,” commented Alex Edmans, head of the Saga Equity Release Advice Service. “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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