A report by Sanlam UK (https://www.sanlam.co.uk/Insights/Recent-News/Millennials-inherit-1-2-trillion.aspx) carried out recently found that 11 million people aged between 25-45 in the UK expect to receive some sort of inheritance from their parents or grandparents with nearly half, 5.1 million, expecting to inherit at least £50,000 in fixed assets or money.
According to the report four out of five (81%) beneficiaries of inheritance expect to receive money, while just over half (51%) assume they will receive fixed assets of some kind. A further 16% say they expect to inherit a business that their family member owned or part owned and a similar number (15%) say they will be receiving the heirlooms of significant monetary value.
Interestingly the report also suggests that only four in ten (38%) of those set to receive an inheritance have spoken to the gifting party about their plans which could lead to a mismatch between expectations and reality.
“Clearly, the recipients of this wealth- many of whom straddle the line between millennials and generation Xers-are relying on their inheritance to act as a financial panacea,” said Sanlam UK CEO Jonathan Polin. “This is understandable in the context of rising debt levels, stagnant wage growth, and spiralling property costs, all of which have had a deleterious effect on disposable income.”
“That said, over reliance on inheritance could be risky, especially if it affects the younger generation’s level of engagement with savings and investments today,” he added. “As a first step, families need to have full and frank conversations about inheritance-this will ensure younger generations have realistic expectations of what they are to receive and can prepare accordingly.”
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