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Inheritance tug of war

Posted on 18 August 2015

Retirees and their children are expecting financial support from each other

  • 1 in 6 adult children are relying on inheritance from their parents
  • 1 in 6 parents expect their children to support them when they retire
  • 1 in 10 adult children say their parents are 'blowing' their inheritance

Parents and children are banking on financial support from each other, according to the latest research from SunLife.

The study reveals that while one in six (16%) of parents are expecting to be supported financially by their grown up kids when they retire, one in six (17 %) of adult children are relying on inheritance from their parents, causing a inheritance tug of war!

Furthermore, one in ten grown up children are relying on this inheritance so much that they think their parents are blowing too much of it!

SunLife’s research also reveals that as a percentage of income, older people are better off than younger generations; those age 55-70 have less than half (46%) their income allocated to fixed costs, compared to 57% for 18-24 year olds, 53% for 25-44 year olds and 51% for 45-54 year olds.

Ian Atkinson, head of brand at SunLife comments: “Long gone are the days when pensioners spent their retirement doing crosswords and gardening, nowadays, the over 60s are just as likely to be skiing as sewing.

“In fact, independent research by Saga* found that among those aged between 65 and 74, spending on travel increased by 93 per cent between 2002 and 2012 and this is clearly bothering some people, with one in ten complaining that their parents are having too much fun with their ‘inheritance’!"

“Furthermore, recent research has warned that middle-aged people can no longer rely on an inheritance as they will be almost retired before they receive any money – according to analysis by The Telegraph earlier this year, in 1999, the average Briton who inherited money was aged just under 53, now it is rapidly approaching 60**

“By assuming we will get financial support from our families rather than making financial plans of our own, many of us are leaving our financial futures uncertain."

“Our research shows that on average, UK households have £381 spare cash a month – which is the equivalent of £38 a week per person. Putting just some of this aside each month could make a big difference.”

To help savers, SunLife has launched My Smarter ISA, stocks and shares ISA providing a straightforward and affordable way to invest . Provided by Scottish Friendly, My Smarter ISA, is available from £10 per month or with a lump sum of £100 or more, you can stop, start or change payments with no penalties and are guaranteed to get back at least what you've paid in on the tenth anniversary- provided you've made no withdrawals.

Remember you could get back less than you invested

Ends

 

Saga: Bust to Boom – The over 50s and their growing importance to the UK economy
**
Telegraph: Why inheritance is dead for a generation in middle-age

Here's the information that you need to know about who we are and the other companies that we work with in order to provide our products and services.

Who are SunLife?

Phoenix Life Limited trades as SunLife and is the provider of the Guaranteed Over 50 Plan, SunLife Insurance and the life insurance policy payment option for Funeral Plans. Phoenix Life Limited’s registered office is at 1 Wythall Green Way, Wythall, Birmingham, B47 6WG (registered in England, no. 1016269). 

SunLife Limited distributes financial products and services and is a company limited by shares, registered office: 1 Wythall Green Way, Wythall, Birmingham, B47 6WG (registered in England, no. 05460862). SunLife Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (registration no. 769427).

You can contact us by post at SunLife, PO Box 1395, Peterborough, PE2 2TR or by phone on 0800 008 6060.

If you choose to add Funeral Benefit Option to your Guaranteed Over 50 Plan, Dignity Funerals Ltd arranges and provides the funeral services, registered office: 4 King Edwards Court, Sutton Coldfield, West Midlands, B73 6AP (registered in England and Wales, No. 00041598). Dignity Funerals Ltd is a member of the National Association of Funeral Directors.

Who provides the Funeral Plans?

Dignity Funerals Ltd arranges and provides the funeral services, registered office: 4 King Edwards Court, Sutton Coldfield, West Midlands, B73 6AP (registered in England and Wales, No. 00041598). Dignity Funerals Ltd is a member of the National Association of Funeral Directors.

The life insurance policy that pays for your funeral will be provided by Phoenix Life Limited, trading as SunLife.

Who provides My Smarter (ISA)?

My Smarter (ISA) is provided by Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority. Details can be found on the Financial Services register, registration No. 188832. Member of The Investment Association. Registered Office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ.

Who provides the Will writing services?

Hugh James is authorised and regulated by the Solicitors Regulation Authority (SRA Number:303202).

The information contained on this website is based on Hugh James' understanding of the law of intestacy in England and Wales only as at April 2014. The law in Scotland and Northern Ireland is significantly different. This is for information purposes and is not intended to be legal advice.

Who provides SunLife Pet Insurance

SunLife Pet Insurance is arranged and administered by BDML Connect Limited. BDML Connect Limited is authorised and regulated by the Financial Conduct Authority (No. 309140). Registered in England and Wales Number 02785540. Registered Office: 45 Westerham Road, Bessels Green, Sevenoaks, Kent, TN13 2QB.

Who provides SunLife Home Insurance

SunLife Home Insurance is arranged and administered by BISL Limited and underwritten by a panel of insurers. BISL Limited are an intermediary authorised and regulated by the Financial Conduct Authority. Registered in England no. 03231094. Registered office Pegasus House, Bakewell Road, Orton Southgate, Peterborough PE2 6YS.

Who provides SunLife Car Insurance

SunLife Car Insurance is arranged and administered by BISL Limited and underwritten by a panel of insurers. BISL Limited are an intermediary authorised and regulated by the Financial Conduct Authority. Registered in England no. 03231094. Registered office Pegasus House, Bakewell Road, Orton Southgate, Peterborough PE2 6YS.