Half of retirees plan to leave an inheritance
by Sarah Ashcroft
Almost half of people planning to retire expect to make a will
and leave an inheritance, a new poll shows.
Despite the ongoing squeeze on family finances, many will have cash left to give to relatives and friends when they die, the survey from Prudential reveals. It comes amid further bad news for savers as the Bank of England announces that it will maintain interest rates at their historic low of 0.5 per cent for another month, which could put more pressure on pensioners' incomes.
Although the survey found 49 per cent plan to leave an inheritance, one in 12 ( eight per cent) would change their will to boost their retirement income.
There are two main ways this year's retirees would look at to boost their retirement income. A third (33 per cent) indicated that they would sell the family home and downsize, while 29 per cent would consider returning to some form of paid employment.
However, more than two-fifths (44 per cent) say their families are not expecting to be left an inheritance at all. This figure is above the 35 per cent who believe that their families do expect to inherit something.
A recent study from MyVoucherCodes.co.uk found that 53 per cent of Brits anticipate receiving some kind of inheritance. This poll also found 61 per cent of younger people don't think that they will be able to leave money to their own children.
Matthew Stephens, inheritance tax expert at Prudential, said: "Being able to leave an inheritance is important to many people and our research shows that despite the squeeze on living standards, nearly half are confident they will be able to fund their retirement and still leave money or assets to their loved ones.
"Inheritance planning is crucial in the run up to retirement. The inheritance tax threshold has been frozen at £325,000 until 2015, meaning that many people will potentially face a tax bill if they do not plan ahead."
Published on: March 8, 2012
Did you like this article? Share it!