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Retirees relying on Bank of Mum and Dad

Journalist: Rachel Mortimer, The Times

ended 20. February 2023

Keen to hear from experts on whether there is a growing trend of older people relying on an inheritance to be truly financially secure or purchase property. 

Data from Zoopla found a third of people aged 65 and over who have parents on the property ladder are relying on inheritance for financial security, rising to 37pc of those aged 55-64. 

Are you seeing older people/retirees buying bigger properties once an inheritance comes through? Or is an eventual inheritance a big part of their retirement plans? 

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Editor
Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
A larger proportion of people are relying on inheritance for financial security in old age, but most notably older millennials. They, typically, have the largest amounts to inherit from parents who lived through massive property price increases. We see lots of clients who still have interest-only mortgages of lending that goes will into retirement, with inheritance being used as their primary repayment strategy. As long as clients have had these plans confirmed with those currently holding the money, this isn't necessarily a bad idea. It means they can focus on other areas of financial planning like pensions and savings. It's more of a concern when clients are using inheritance to fund their retirement, which also happens often but means most tax planning tools havent been used.