Less importance given to leaving an inheritance

A quarter of over-75s (25%) – and more than a fifth of over-55s in total (21%) – have given a cash loan to family members instead of leaving an inheritance, according to Aviva’s latest Real Retirement Report.

The findings also show nearly one in ten over-55s regularly give money to family to avoid inheritance tax (8%), while a further 20% would do the same.

The spring edition of the report examines the financial pressures faced by the UK’s three ages of retirement – 55-64s (pre-retirees), 65-74s (the retiring) and over-75s (the long-term retired) – and focuses specifically on attitudes to inheritance. It shows just 7% of over-55s rate this as their top financial priority in retirement, and while this predictably increases with age, just 18% say the same by the age of 85.

Building up an inheritance pot comes a distant third as a financial priority for the over-55s behind meeting living costs (77%) and providing more immediate support to family (17%). It is only after the age of 65 that it becomes their second priority after managing the cost of living (69% vs. 19%) and ahead of family support (12%).

“It is not just the older generation who have seen their financial realities change, but also younger family members who often need support to access the property ladder or raise children of their own,” commented Clive Bolton, managing director of Aviva’s At Retirement business.

“For some over-55s the desire to leave an inheritance plays second fiddle to more urgent financial proprieties, and even those who are financially secure are often tempted to share their wealth during retirement rather than wait to leave an inheritance.”

Contact our Solicitors

For our high quality legal services call our solicitors on 01357 520082 or click here to make an online enquiry.