UK can't rely on inheritance money, says Fidelity
24/08/2006
People in the UK should not be relying on inheritance money to fund their retirement, according to investment company Fidelity International.
A total of 49 per cent of those below the age of 35 are relying on inheritance finance instead of their own pension savings, to fund their activities in older age, the firm states.
Fidelity suggests that a third of individuals between the age of 35 and 54 are relying on inheritance, indicating that the older generation are more realistic about their future money.
The research also highlights that 25 per cent of the nation are looking forward to an inheritance that exceeds £100,000.
"The message is clear," said Simon Fraser, president of institutional business at Fidelity International.
"A good retirement plan should rest on solid foundations, not unpredictable windfalls. Expectations of an inheritance may be misplaced, or at least overly optimistic.
"As the population ages, assets accumulated over a lifetime may have to be used to pay for care. If the individual relies on an inheritance which does not transpire, they will have missed out on precious time. The potential value of every pound invested diminishes rapidly."
In related news in Scotland this week, Clydesdale Bank reported that 29 per cent of Scots do not save money because they "cannot be bothered with the hassle" of transferring money between their accounts.
A total of 49 per cent of those below the age of 35 are relying on inheritance finance instead of their own pension savings, to fund their activities in older age, the firm states.
Fidelity suggests that a third of individuals between the age of 35 and 54 are relying on inheritance, indicating that the older generation are more realistic about their future money.
The research also highlights that 25 per cent of the nation are looking forward to an inheritance that exceeds £100,000.
"The message is clear," said Simon Fraser, president of institutional business at Fidelity International.
"A good retirement plan should rest on solid foundations, not unpredictable windfalls. Expectations of an inheritance may be misplaced, or at least overly optimistic.
"As the population ages, assets accumulated over a lifetime may have to be used to pay for care. If the individual relies on an inheritance which does not transpire, they will have missed out on precious time. The potential value of every pound invested diminishes rapidly."
In related news in Scotland this week, Clydesdale Bank reported that 29 per cent of Scots do not save money because they "cannot be bothered with the hassle" of transferring money between their accounts.
