Inheritance Tax  

Most babyboomers willing to spend kids' inheritance

Most babyboomers willing to spend kids' inheritance

The majority of people aged 50-plus want to enjoy life, not save their money to pass on to their kids, research has revealed.

Life insurer SunLife found 62 per cent of babyboomers thought money was there to be spent while more than half (56 per cent) said they wanted to enjoy their money now, not pass it on to others.

The insurer completed 50,004 online interviews with people aged 50-plus in January 2017.

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The insurer found one in five people were spending their money on new hobbies, learning new skills and visiting new countries. 

But despite some perceived misgivings about the wealth of babyboomers when compared with younger generations, particularly with regards to their often generous pension arrangements, SunLife found children supported their parents' spending habits.

In a separate piece of research carried out in April and May 2017 the insurer found a mere one in 10 disagreed with their parents on the matter.

Ian Atkinson, marketing director at SunLife, said: “Our research shows that younger generations are not bitter. 

“In fact, the vast majority don’t see their parents as selfish simply for spending and enjoying their own hard-earned cash - just one in 10 thought their parents are spending too much of their inheritance.”

However, SunLife detected some dissonance between children genuinely wanting parents to enjoy their retirement while also being aware that they will need some financial help.

The poll found one in 20 adults admitted they were relying on an inheritance to either help pay off debts or to provide or supplement their income later in life.

The same number of adults said they were depending on their children to help support them financially when they are older.

Mr Atkinson said: "While a third of people in their 60s and 70s say they try and save their money to pass on as an inheritance, far more would rather enjoy it now.

"This attitude is clearly a sticking point for some, with one in 10 complaining that their parents are having too much fun with their inheritance.

“However, most are happy to see their parents having fun with their cash – after all, this often involves them anyway, with a third of over 50s saying they spend much of their money on their kids and grandkids."

He said more than a third of parents still said they were saving their cash to pass it on to younger generations, while of those who planned to spend all their money on themselves, half still planned to leave their homes as inheritance to younger generations.

Mr Atkinson said: "Whichever way you look at it, assuming you will get financial support from your family rather than making financial plans of our own, is a dangerous game."