- About a third of children also said they would like it if their parents did this
A study shows that a third of people over sixty would rather spend their savings on enjoying their later life than leaving an inheritance for their children.
Among people aged 50 to 59, 31 percent preferred to spend money rather than leave an inheritance. Among those between the ages of 60 and 69, this rises to 33 percent, according to a study by life insurer SunLife.
Among those over 70, 29 percent say the same.
Make the most of their retirement: While a third of over-60s plan to spend their money, a similar percentage of young people say they would like their parents to do the same
A greater number said they would like to leave a legacy to their family: 50 percent of those over 70, 40 percent of those aged 50 to 59 and 43 percent of those aged 60 to 69.
However, only 12 percent of the three age groups said they would be willing to cut back on their retirement spending to leave money to their loved ones.
SunLife also asked children if they would like it if their parents spent their savings during retirement, rather than leaving money to them.
A third (33 percent) of people said they would rather see their parents spend their potential inheritance rather than save it for themselves and the rest of their family.
Younger generations were less likely to approve of the idea than their older counterparts, with only 27 percent of 18- to 24-year-olds saying they would rather see their parents spend the money than pass it on to them.
That rose to 31 percent of people aged 25 to 34, and 38 percent of people aged 45 to 54. Of those over 65, about 39 percent said they would prefer their parents to spend the money.
Mark Screeton, chief executive of SunLife, said: ‘Our data shows that, despite the pressures of the high cost of living, the topic of inheritance is quite divisive.
Some 43 percent of over-50s would like to leave money behind – and 12 percent will sacrifice their own pensions to do so – but a third of those for whom they are cutting back say they would prefer their parents put their money towards their pension. ‘
It seems that those in retirement are most interested in some extra money from their parents; 43 percent of people over 65 say they would like to receive an inheritance, but are not dependent on it.
This compared to just 22 percent of those aged 55 to 64, 26 percent of those aged 25 to 54 and 27 percent of those under 25.
Early inheritances are increasing
About 21 percent of parents, about 5.4 million people, said they would rather give an inheritance early so they can see their family benefit from the money, rather than leaving it in their estate when they die .
As many as 25 percent of over-50s, 6.5 million people, have already given ‘significant’ cash gifts to their family in the past five years, while 36 percent of people over 70 have also done so.
While some of these donations were for specific reasons, such as home deposits, helping pay off debts and money for a car, 17 percent of people who donated said it was simply an ‘early inheritance’ that they could spend as they pleased. wanted. .