Over 55s are likely to save the majority of any inheritance they receive and will spend £21,000 on average, according to Sunlife.
Research by the insurance provider shows that the average inheritance now stands at £119,000.
Of this amount, most adults would aim to save it with 11% saving all of it with a further 80% saving on average £56,596.
When it comes to using cash, 40% would spend £6,000 to pay off debts while 29% would clear off their mortgages.
Spending money on a holiday was the top trend among adults in 2016 (77%) followed by home improvements (49%), buying a car (42%) and windfall on their children (41%).
Among age groups, 25% of over 55s would use their money to pay off debts compared 50% of adults aged 18-34.
Younger adults are also more likely to put money towards buying a property compared to just 1 in 12 of over 55s.
Ian Atkinson, head of branding at Sunlife, said:
“As our research has found, saving money can make us happier than spending it. The research also shows that experiences can make us happier than things, so where people are spending some of their inheritance, it’s interesting to see the top choice is in fact an experience – having a holiday.”