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25% of Brits Won't Leave an Inheritance

Posted by Kings Court Trust

According to the Professional Pensions website, more than 25% of Brits think people should spend all their money during their retirement years, meaning their children and future generations will have to fend for themselves.

This is according to data gathered from the 'Choices For Later Life' report from HSBC; it was found that the gap between those who believe people should spend all their money in retirement and those who thought people should leave as much as possible to future generations was highest in the UK compared to other countries.

The average 'spend versus save gap' was eight percentage points – in the UK, however, it was a staggering 21. This put the UK ahead of other 'rich' countries, including Canada – at 20 percentage points' difference – and Australia, at 19. The report questioned 16,000 people from across 15 countries.

In a similar article published by The Telegraph, it is reported that over 50% of retirees are giving out their inheritance to family and friends before they die, in a trend for 'living inheritance.' This means pensioners are able to see their beneficiaries enjoy their inheritance whilst they are alive, but also avoid possible inheritance tax charges.

HSBC conducted another poll which found that 20% of retired people are regularly giving money to their grown-up children, and 10% are giving money to their grandchildren.

What are your opinions on the 'spend versus save' argument? Do you think it's best for people to leave money in a will, or to help children out while they're still alive and able to see them enjoy it? Or, do you think retirees should spend all their money on themselves?

Author: Kings Court Trust

Your partner through probate. Kings Court Trust is an award-winning probate and estate administration provider that support families at the difficult time of losing a loved one. Our tax and legal teams have the expertise to advise on any situation. We are committed to offering families a great service for a fair price which is why we work on a fixed fee basis so they know exactly what our service will cost from the outset.

Topics: IHT, Industry News, Inheritance Tax