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60% of the over 55s plan to leave an inheritance to children / grandchildren
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One in eight over 55s (13%) have children / grandchildren and are not planning to leave an inheritance while 13% simply don't know
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6% of retirees are using an inheritance to help supplement their pension
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15% of retirees would use the inheritance they planned to leave children or grandchildren to fund any long-term care in the future
New insight from MGM Advantage, the retirement income specialist, reveals the plans of people thinking about retirement and inheritance. Six in 10 (60%) over 55s plan to leave an inheritance to children and grandchildren, while 13% are undecided about leaving money behind to relatives.
As people grow older their confidence in being able to pass on wealth increases. 50% of people aged 55-59 are currently planning to leave a nest egg to children or grandchildren, compared to 71% of people aged 75-79.
Regionally, the number of over 55s planning on leaving an inheritance climbs as high as 67% in Yorkshire & Humberside and falls to a low of 54% in Wales and the East Midlands. When asked how they would fund long-term care at any point in the future, 15% of the over 55s would use the nest egg they planned to leave children or grandchildren. This rises to 36% of those aged 80 or more.
As part of the retirement income mix, inheritance plays a small part for today's retired generations. Only 6% of retirees say they are using an inheritance lump sum as part of their pension income.
Andrew Tully, MGM Advantage, said: "Inheritance plays a very small part in helping retirees make ends meet, with many people planning to leave a nest egg for children or loved ones. Yet when push comes to shove, many people would need to raid their savings to fund future long-term care needs. Often families find discussing finance and inheritance a taboo subject. This does beg the question if future generations should bank on inheritance to help fund their own retirements."
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