Don’t Mention Inheritance

Britons might expect an inheritance and may even include it when planning for retirement but for the majority it’s a subject not to be discussed openly.

For a lot of us discussing any personal finance matter is difficult, even on occasion with our partner, so it is perhaps not surprising to learn that the majority of Briton don’t talk openly with their parents about inheritance.

New figures from Aviva show that almost two-thirds have not, or would not talk about the subject openly with their parents. This being even though fact that 40% of people still expect an inheritance.

Whilst some even build it into their retirement planning, some 76% of those asked would still be happy for their parents or grandparents to take money from their property to help them enjoy their retirement rather than passing the money on.

Over 55s have an unsecured debt of of over £17,000 according to Aviva’s recent Real Retirement Report. This is down to rising living costs and is made up of credit card debt, personal loans, overdrafts and store cards (7%).

Although house prices aren’t currently rising they have still doubled over the last 20 years. Turning therefore to equity release has become increasingly popular for retirees to fund their lifestyle.

Clive Bolton, ‘at retirement’ director at Aviva, said: “Not everyone has the funds in place to support the retirement they once thought possible and we encourage those approaching retirement to look at their full range of assets, including pensions, investments and property.

“Equity release could be a solution for some, as it allows people to turn the potentially dormant capital in their homes into cash without having to move, thereby helping them make the most of their retirement years.”

MoneyHighStreet comments: “Equity release is certainly worth considering if you do have some available in your home, after all it is likely to be your most valuable asset. Be careful though to go to an approved company to help you with this and if it is part of your retirement planning speak to a professional if need be to get advice.

Even if you are simply looking to release some money to pay off some debt, you still need to ensure you use a reputable company.

Are you sure equity release is the best route for you? If you’re looking for a short term loan for example, perhaps you could secure one against some other valuable assets rather than your house, some art or jewellery for example?

Inheritance is not the only subject either that it is difficult to talk about. There’s such as a lasting power of attorney too – something very difficult to cover and yet vital to address. And there’s establishing a Will – just what do you want to happen with your assets? It’s so easy to think you’ll deal with these things another day but it really is a case of the sooner you address them the better.