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22/03/2009

Many Britons are relying on inheritance to fund their retirement

One in three people in Britain admit they are relying on an inheritance to help fund their retirement.

This is in spite of the fact that many of them have not discussed the issue with their parents, have no idea how much they might be left or even if their parents have made a will.

The research by Friends Provident found that only 14% of adults have discussed inheritance with their families and know how much they are likely to receive. A further 15% have not yet even considered how they will provide funds for their retirement.

A total of 44% said they were not concerned about the current recession reducing the value of their retirement savings and investments.

The study shows that many people could face hardship in their old age if they don’t start planning their investments as soon as possible because they may not receive the inheritance they expect. Even if they do, the value of that inheritance may be greatly reduced as a result of the economic climate.

They may even find that their parents have failed to make a will. That means the estate will be divided in ways laid down by law which may not be to the liking of the children and other members of the family.

If people are fortunate enough to inherit a large estate, they may find themselves paying back large amounts of it in inheritance tax.

Many of these problems can be avoided if people discuss the issues with their parents and families, and then plan ahead accordingly.

Please contact Caroline Grundy of David Phillips and Partners solicitors on 0800 027 7870 if you would like more information about investments, inheritance tax, trusts, wills and probate and similar issues that may affect your future.