One in five savers are relying on a generous inheritance and fear for their quality of life if they don’t get a payout, research finds.
Millions are banking on a windfall from parents to secure a comfortable future, according to Lime Solicitors. But a growing number could struggle in retirement if they are left little, the law firm warns.
As people live longer and costs rise, family members may use more of their savings and care costs could erode a legacy.
Millions of savers are banking on a windfall from parents to secure a comfortable future and a growing number could struggle in retirement if they are left little, according to Lime Solicitors
Almost half of those surveyed by the law firm expect to receive an inheritance, despite just a third having discussed plans with family.
Debra Burton, of Lime Solicitors, says: ‘Inheritance has become one of the only guarantees that many feel they can depend on to achieve the same quality of life as their parents.’
But the difference in expectation — dubbed the ‘inheritance gap’ — could cause surprises.
The amount left to family may also be hit by inheritance tax. A rate of 40 pc is charged on the estate over the £325,000 threshold, which rises to £500,0000 when property is left to children or grandchildren.
