Recent years have revealed a drop in people expecting to leave a financial settlement – from 52% on 2011 to 28% in 2016.
Findings from the research show that:
- those able to leave an inheritance are expected to leave an average of £191,000 (unchanged from 2015)
- 35% are currently helping family members with on-going support, worth on average of £250 a month
- 13% are paying more than £500 a month in supporting family members.
Stan Russell, a retirement income expert at Prudential, said:
“This kind of financial support will make a significant dent in all but the largest of retirement pots, but it can be overlooked by many when planning for life after work. “
Separate research by NFU Mutual found that 79% of adults have not had a conversation with family members about their inheritance.
Sean McCann, Chartered Financial Planner at NFU Mutual, said that it is important that individuals “manage expectations” in order to avoid “painful and potentially costly disputes”:
“Most adults are reluctant to talk to family about how money and other wealth will be passed on after they die, unfortunately by not talking about it bitter disputes can erupt, potentially lasting for generations.