Despite struggling with ther personal finances and trying to save money where they can, the majority of this generation’s parents anticipate they won’t have money to leave their children. Is inheritance therefore a dying trend?
Many UK adults today rather expect an inheritance and may even include it when planning for retirement – albeit that for the majority it’s rather taboo to mention inheritance, as indeed is the whole subject of personal finance a difficult one for many to discuss openly.
The not so good news is that a new study by the UK’s leading discount website, MyVoucherCodes.co.uk, has revealed that the children of parents currently aged 30 or under may not have such fortunes to look forward to.
All respondents of the study were asked, ‘Have you already received, or are you expecting, some kind of inheritance from a parent or grandparent?’ to which more than half, 53%, said ‘yes’.
They were then asked to explain what sort of inheritance they were expecting and told to select all that applied from a list of possible answers, to which the top answers were money (71%), real estate (55%), vehicle (29%), general possessions such as furniture etc (23%) and business (9%)
The respondents were then asked, ‘Do you think you will have money to leave as inheritance to your own children?’ to which the majority, 61%, said ‘no’.
A quarter said the reason for this was because they were still yet to get a mortgage. Nearly 40% said it was because they had nothing in savings accounts and some 11% thought it was because they would be ‘forever in debt’.
Mark Pearson, chairman of MyVoucherCodes.co.uk, commented: “Inheritance is certainly something that is bitter sweet for anyone who receives it; having some kind of gain from a huge personal loss of a loved one.
“With the economy heading the way it is at the moment, it comes as no surprise to me that this generation of parents fear they will have nothing to leave their children.
“For those thinking they will forever be in debt, there is hope.
“Cutting unnecessary spending and making savings wherever possible by taking advantage of sales and discount codes is one of the first steps to take. By minimising debt, it enables you to build up a small nest egg for yours and your children’s future.”
MoneyHighStreet comments: “Whether it be trying to save money through sales and discount codes or indeed trying to get into the habit of saving a little each month, money can really add up.
“An option to consider is to save if at all possible for your children, perhaps by opening a Junior ISA. Putting money into a savings account for a child can really set the child up for later life.
“Lloyds TSB for example has recently launched a Junior ISA, as has the Halifax – which offers an improved interest rate if the person with parental responsibility for the child with the ISA, also has their own ISA with Halifax.”
MyVoucherCodes is part of the MarkcoMedia Group, the largest voucher, discount and money saving company in Europe and saved consumers more than £60m on online purchases throughout 2011, alone. It is the UK’s most popular discount site.