Transfers of wealth – who gets what
Data from the Office for National Statistics5 show that various patterns are emerging in how wealth is transferred down the generations.
Unsurprisingly, gifts and loans are more commonly made to those aged 25–34, with 11% in this age bracket receiving more than £500 during the previous two years, with the average across all age groups being £2,000. This illustrates that parents are stepping in to help their offspring cope with times of major expense, like buying a house or starting a family.
Inheritances come later in life
The average inheritance across all age ranges during the previous two years was £11,000, with those aged 55 to 64 most likely to receive larger inheritances, receiving on average £33,000. Those aged 65 and over inherited on average £20,000. This money was put into savings or investments by around 49% of recipients.
This research serves to highlight that those who rely on receiving an inheritance instead of putting adequate pension provision in place might find they’ve reached retirement before they inherit. With gifts often given earlier in life, inheritances may be smaller in the years to come.
5ONS, Oct 2018