Helping family with ‘living legacies’
Rather than focusing on inheritance as the best way to pass on wealth, over-55s are increasingly looking to help their families out
financially during their lifetimes. This trend towards helping family with ‘living legacies’ has been revealed in recent research5
and has been in part due to increased life expectancy pushing up the average age at which younger generations inherit from their parents. People born in the 1980s are now predicted to receive their inheritance at age 64 on average, compared to 58 for those born in the 1960s.
The fear of running out of money during retirement has previously prevented many older people from offering financial support during their lifetime. This concern appears to be lessening, however, with a third of respondents to the research saying they’d be unwilling to help a family member onto the property ladder without knowing how much they’d need in retirement – compared to half of respondents to the
same survey in 2016, helping family with ‘living legacies’.
Aviva’s Matt McGill commented, “This increasing tendency towards considering helping out now rather than beneficiaries receiving an inheritance after death is perhaps a refl ection of the turbulence and uncertainty that everyone has been through since we previously ran our survey in 2016, and which shows no sign of diminishing. Along with the hardship people have faced, it’s also been a time of reflection for many and this could have included a resolution to live more for the moment and help family and loved ones now.”
5 Aviva, 2022
Source: Essentially Wealth Q4