Boomers are increasingly opting to spend their pension savings to enjoy their retirement instead of leaving it for their children and grandchildren, according to new research.
Data from over 50s experts SunLife reveals a growing “divise” among Britons regarding inheritance.
While 50 per cent of those aged 70 and above express a desire to leave an inheritance, only 40 per cent of 50-59 year olds share this sentiment.
Notably, a third of people over 50 would prefer to spend their children’s inheritance on enjoying their own retirement, even if it means leaving nothing behind.
This shift in priorities comes as 63 per cent of over 50s worry about the cost of living, and 34 per cent fear running out of money in retirement.
While one-third of adult children would prefer their parents to spend their hard-earned money on themselves, an equal number are either hoping for or relying on an inheritance.
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Notably, older children are more likely to depend on inherited wealth, with 10 per cent of those aged 55-64 counting on parental inheritance to fund their own retirement.
Seven per cent of Britons – rising to 12 per cent of 45-54 year olds – express a desire for immediate access to inheritance funds rather than waiting another decade or two.
The trend towards early inheritance is gaining popularity among older Britons. SunLife’s research indicates that 21 per cent of people, equivalent to 5.4 million individuals, prefer giving early inheritance to witness their loved ones enjoy the money.
This approach has been embraced by a quarter of those over 50, with approximately 6.5 million people having gifted significant sums to family members in the past five years.
The motivations behind these gifts vary. While 17 per cent of givers cited early inheritance as the sole reason, others aimed to assist with specific financial needs.
These include helping with home deposits (19 per cent), supporting general living costs (23 per cent), aiding debt repayment (14 per cent), contributing towards vehicle purchases (17 per cent), or funding weddings (13 per cent).
The cost of living crisis is a significant concern for 63 per cent of over 50s, while 34 per cent worry about depleting their retirement funds.
Despite this shift, there remains a notable portion of adult children who either hope for or rely on an inheritance, highlighting the complex nature of intergenerational financial expectations in modern Britain.
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Mark Screeton, the CEO at SunLife, outlined what these figures suggest about peoples’ evolving thoughts on inheritance going forward.
He explained: “Our data shows that amid the pressures of high cost of living, the subject of inheritance is quite divisive.
“Some 43 per cent of over 50s would like to leave money behind and 12 per cent will sacrifice their own retirement to do so but a third of those they are scrimping for say they’d rather their parents spent their money enjoying retirement.”
Screeton emphasises the need for open conversations about financial options, including equity release. He notes that modern equity release products offer consumer protections, such as the no negative equity guarantee.