Will You Be Able To Leave An Inheritance?

Despite an ongoing struggle with family finances, nearly half of those retiring this year expect to be able to leave an inheritance.


According the Prudential’s Class of 2012 report, 49% of those planning to retire this year believe they will be able to afford to do so and still leave money or other assets to their families.

This has dropped slightly from the 52% that felt this last year.

Interestingly enough, whilst 44% of those retiring say their families are not expecting to be left an inheritance, some 35% believe their families do expect something.

Of course if personal finance matters become to much of a struggle a number say they will cancel their plans to leave an inheritance simply so that they can make ends meet.

If retirees need to boost their income they will in the main look to sell their family home or consider returning to some form of paid employment.

Matthew Stephens, inheritance tax expert at Prudential, said:  “Being able to leave an inheritance is important to many people and our research shows that despite the squeeze on living standards, nearly half are confident they will be able to fund their retirement and still leave money or assets to their loved ones.

“Inheritance planning is crucial in the run up to retirement.

“The inheritance tax threshold has been frozen at £325,000 until 2015, meaning that many people will potentially face a tax bill if they do not plan ahead.

“To ensure it’s possible both to leave an inheritance and secure a comfortable retirement income, it’s vital to seek professional financial advice well in advance of your intended retirement. Saving as much as possible, as soon as possible, will also help people to meet the retirement provision that they need.”

MoneyHighStreet comments: “It’s interesting to see that of those retiring this year such a high proportion feel they will be leaving an inheritance. In contrast, as we recently reported, those children who have parents currently aged 30 or under may not be so fortunate as over 60% of such parents believe they will not be in a position to leave an inheritance.

“As Matthew comments, inheritance planning is crucial –  a subject that unfortunately many find difficult to talk about.

“As with all personal finance matters discussion and planning are key to ensuring you get the products and services you need and of course that you get the best deal too.

“If need be seek professional advice to help you make the best decisions.

“A final point too, again one that is is bit of a taboo when it comes to discussion, and that is the subject of dying. It is a fact of course that we will all day at some point but what is staggering is just how much it costs to die! Planning ahead though can save money and of course help loved ones, both in addressing the cost and understanding your wishes.”

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