Inheritance to peak in 2047 as baby boomers are set to leave trillions
Inheritance is due to peak in 2047, as the affluent post-war baby boomer generation grows old.
The research from HSBC has shown that £1.1 trillion will be left to beneficiaries by 2047, as baby boomers are due to leave windfalls. But the levels of inheritance left will start to scale back after this time.
Increased longevity will affect the windfalls that are left, as living longer means spending more wealth on the cost of living. While those that are receiving an inheritance are also getting older, meaning that they are less likely to be at a time in their life where they are acquiring wealth, and therefore more likely to spend it.
Commenting, David Wells, head of investments, pensions and savings at HSBC said: “The findings of this report serve to highlight the importance of financial planning, both for those who plan to bequeath an inheritance and for those who are likely to be in receipt of one. Wealth needs to be carefully managed so that the value is not eroded before it can be passed down to future generations. Many of us will be reliant on an inheritance to achieve the lifestyle our parents have enjoyed.”
The news comes as the default retirement age is due to be scrapped tomorrow (1 October). Meaning that employers can no longer impose a retirement age of 65, and recognising the fact that life expectancy is increasing.