Younger retirees less focused on leaving an inheritance

| October 23, 2012
Younger retirees less focused on leaving an inheritance

Traditionally parents have attached great importance to leaving an inheritance to their children, but attitudes are changing according to a survey by equity release and annuity provider Just Retirement.

The survey, of homeowners aged over 55, was designed to gauge consumer attitudes towards housing equity withdrawal.

Just Retirement found that younger retirees are more concerned about maintaining their standard of living in retirement than saving their money to pass on to the next generation.

Only 28 per cent of those within a year of retirement thought it was important to leave as much inheritance as possible, compared with 38 per cent of all respondents.

Older retirees were more likely to feel that it was their duty to leave something for the next generation.

A small majority (55 per cent) of those surveyed said they would like to pass on their money before they passed away.

Stephen Lowe, group director of external affairs and customer insight at Just Retirement, said: “Our research into attitudes towards equity release gave insights into how retiring and retired homeowners think about inheritance.

“Basically, older retirees feel more strongly that they worked hard to own their home and are more likely to want to pass it on.

“This contrasts with those coming up to retirement or who have recently retired who feel that passing on the home would be nice to do, but is not essential.”

The Institute for Fiscal Studies has also released the results of a study into retirement.

It suggests that the majority of people aged between 50 and state pension age face a 20 per cent drop in income when they retire.

Forty per cent will see their income fall by at least third, the study suggests.

However, when sources of retirement income other than state pension are taken into account, only 20 per cent of people aged between 50 and state pension age will face an income reduction of 20 per cent.

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