21% ‘not leaving any inheritance’
One in five people approaching retirement does not plan to leave any inheritance behind, a report has found.
Many are already handing out cash gifts and loans to hard-pressed family members or are still trying to pay off their own loans and mortgage debt, according to Aviva’s Real Retirement report.
Meeting living costs and providing immediate financial support to family were seen as bigger priorities among the over-55s than building up an inheritance pot.
Some 21% of people aged between 55 and 64 said they do not expect to leave any inheritance behind at all, including property or money.
Clive Bolton, managing director of Aviva’s At Retirement business, said that in the tough economy younger family members are often reliant on their parents for financial support to buy a house or provide for their children.
He said that for some over-55s, the desire to leave an inheritance plays “second fiddle” to more urgent financial priorities.
More than one quarter (27%) of 55 to 64-year-olds were found to still have an outstanding mortgage, with £70,000 on average needing to be repaid.
The report also found that someone aged over 55 with non-mortgage debts typically owes one third (36%) more than they did two years ago, at £23,188 on average.
High living costs were blamed for much of the increase, with the over-55s typically spending around £168 more on food shopping and £63 on travel costs annually than they did a year ago.
However, the proportion of over-55s with non-mortgage debt has shrunk back from 12% in May 2012 to 9% in May 2013, indicating that debts are becoming increasingly concentrated among a smaller group of people.
More than 16,000 people aged over 55 have taken part in the quarterly reports for Aviva since they began in February 2010.
News from the Press Association
Latest posts by News from the Press Association (see all)
- Apparently a five-minute Facebook session can boost your self-esteem - August 16, 2017
- Daniel Craig: I will be James Bond again - August 16, 2017
- Viewers show love for The Big Family Cooking Showdown in place of GBBO - August 15, 2017
- Who does the best tea and cake? 3 places in Yorkshire to indulge for Afternoon Tea Week - August 15, 2017
- The fascinating English words which actually originated in India - August 15, 2017
Leave a Comment!
Community Terms & Conditions
These content standards apply to any and all material which you contribute to our site (contributions), and to any interactive services associated with it.
You must comply with the spirit of the following standards as well as the letter. The standards apply to each part of any contribution as well as to its whole.
be accurate (where they state facts); be genuinely held (where they state opinions); and comply with applicable law in the UK and in any country from which they are posted.
Contributions must not:
contain any material which is defamatory of any person; or contain any material which is obscene, offensive, hateful or inflammatory; or promote sexually explicit material; or promote violence; promote discrimination based on race, sex, religion, nationality, disability, sexual orientation or age; or infringe any copyright, database right or trade mark of any other person; or be likely to deceive any person; or be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence; or promote any illegal activity; or be threatening, abuse or invade another’s privacy, or cause annoyance, inconvenience or needless anxiety; or be likely to harass, upset, embarrass, alarm or annoy any other person; or be used to impersonate any person, or to misrepresent your identity or affiliation with any person; or give the impression that they emanate from us, if this is not the case; or advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.
Nurturing a safe environment
Our Silversurfers community is designed to foster friendships, based on trust, honesty, integrity and loyalty and is underpinned by these values.
We don't tolerate swearing, and reserve the right to remove any posts which we feel may offend others... let's keep it friendly!