Two fifths leaving an ‘early inheritance’
Nearly 40 per cent of people retiring this year will continue to provide financial support to their families, according to Prudential.
In its seventh annual study into the future plans and aspirations of people who plan to retire this year, Prudential found that of those who still offer regular support to loved ones do so at a cost of around £250 a month (£3000 a year). Typically this is for everyday living expenses such as food or travel. However 11 per cent admit it is for more luxury items such as holidays, new cars or TVs.
While 30 per cent believe they will still have some money left to leave as an inheritance, nearly a quarter (24 per cent) will not have anything left to leave as a consequence of this ongoing financial support.
Richard Espley is the Head of Equity Release at Goldsmith Williams:
“In this unsettled financial climate, it’s of no great surprise that younger generations are reliant on their parents and grandparents for support.
“But what this report shows is that, while the most common reason for financial support is everyday living, many retirees are also choosing to provide loved ones with an early inheritance.
“Equity release can help with this. For many of us our home is our largest asset and our loved ones would receive the majority of their inheritance from it. Equity release however allows you to access some of the money tied up in their property without the need to sell or move. This is becoming a more popular option for retirees who benefit from seeing their loved ones enjoy their inheritance.”
Content correct at time of publication