Third of sixty-somethings plan to spend their money instead of leaving an inheritance

A third of people in their 60s would rather spend their savings enjoying their later life than leave an inheritance for their children, a survey has found. 

Among those aged 50 to 59, 31 per cent favoured spending instead of leaving an inheritance, rising to 33 per cent for those between 60 and 69, a study by life insurance company SunLife shows. 

Among over 70s, 29 per cent said the same.

A higher number said they would like to leave an inheritance to their family, comprising 50 per cent of over 70s, 40 per cent of 50 to 59 year-olds, and 43 per cent of those between 60 and 69.

However, only 12 per cent across the three age groups said they would be willing to cut back on their retirement spending in order to leave money to their loved ones.

SunLife also asked children whether they would be happy for their parents to spend their savings in retirement, rather than leaving money to them. 

A third (33 per cent) of people said they would prefer to see their parents spend their potential inheritance instead of saving it for them and the rest of their family.

Younger generations were less likely to approve of the idea than their older counterparts, with just 27 per cent of 18 to 24-year-olds saying they would rather see their parents spend than pass on the money to them. 

That rose to 31 per cent of those between 25 and 34, and 38 per cent of people between 45 and 54. Some 39 per cent of over 65s said they would rather their parents spent the money.

Mark Screeton, chief executive of SunLife said: ‘Our data shows that amid the pressures of high cost of living, the subject of inheritance is quite divisive. 

Some 43 per cent of over 50s would like to leave money behind – and 12 per cent will sacrifice their own retirement to do so – but a third of those they are scrimping for say they’d rather their parents spent their money enjoying retirement.’

Those heading towards retirement, it seems, are most keen on some extra cash from their parents, with 43 per cent of those over 65 saying they would like to receive an inheritance, but aren’t relying on one. 

This compares to just 22 per cent of those between 55 and 64, 26 per cent of those between 25 and 54, and 27 per cent of those under the age of 25.

Early inheritances on the rise

Some 21 per cent of parents, around 5.4million people, said they would rather give an inheritance early so that they can see their family benefit from the money, instead of leaving it in their estate when they die.

As many as 25 per cent of those over 50, 6.5million people, have already given ‘significant’ cash gifts to their family in the past five years, with 36 per cent of people over 70 having done so.

While some of these gifts were for specific reasons, such as home deposits, helping to repay debt and money towards a car, 17 per cent of people giving a gift said it was simply as an ‘early inheritance’ for them to spend how they wished.