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Britons counting on inheritance

Britons counting on inheritance

Category: Pensions

Updated: 05/05/2009
First Published: 05/05/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Britons relying on inheritance to form a large chunk of their retirement pot could be in for an unwelcome surprise.

New figures have revealed that as many as one in three UK adults are counting on an inheritance of some sort to fund their lifestyles after their time in work finishes.

The findings are part of research conducted by Friends Provident, which found people expect to be left on average around £64,000, despite fact many have not even discussed the issue with their parents.

Surprisingly, almost half of adults don't expect the recession to have any bearing on the value of their inheritance pot and retirement savings.

However, independent figures show the average house has seen a drop in value of £42,500 since August 2007, which would have a huge effect on the 61 per cent of consumers who view property as inheritance.

Only 14 per cent of adults have discussed the matter with their families and are clear on the amount they will receive.

Of those expecting inheritance to aid them in retirement, 36 per cent expect it to fund half or more of their expenditure. Furthermore, 15 per cent of UK adults haven't considered how they will support themselves after their working lives are over.

"Whether people realise it or not, the concept of inheritance is changing," said Martin Palmer, head of corporate pensions marketing.

"In the current climate, it is more critical than ever for people to review their pensions savings and be realistic about what finance will be required to fund their retirement. We are urging families to plan for their financial futures now."

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