How different age groups look on inheritance
16 December 2019
Different generations will use any inheritance they receive in a number of different ways but owning property is high on the priority list, according to research from Just Group.
Nearly a third (30%) of 18 – 34 year olds plan to use any inheritance they receive to get on the property ladder, new research from Just Group has revealed.
For those aged between 35 and 54, the priority was paying off a mortgage, with 32% intending to use any money received to clear their property debt.
Property also featured heavily for the over-55s, with more than one in five (22%) planning to use inheritance to carry out home renovations, while one in seven (15%) said they would focus on paying off their mortgage.
Stephen Lowe, group communications director, Just Group, said the findings highlighted the importance of inheritance in realising property dreams.
He said: “Inheritance can provide a significant cash windfall and it is evident that many people are planning to use these funds to buy or improve their property on the same way.”
According to Lowe, the contrasting priorities of the different generations reflect the property journey that the majority of people follow over the course of their life, from getting on the property ladder to paying off a mortgage and then making home improvements.
The research by Just Group found that aside from property, saving or investing at least some of their inheritance money remained the default option for most people with over a third (34%) of the youngest age group and nearly two in five (39%) over 55s citing this.
Preparing for retirement, be it putting aside money for later-life care or boosting a pension pot, was also a major focus for those over the age of 35. Nearly a quarter (23%) of 35-54 years old said they would use some of the money to cover later life, while 22% of over-55s said the same.
Tuition fees also featured in the list of uses for inheritance money, with around one in seven (13%) 18-34 years old opting to pay for school or university fees with the money.
Low added: “This research gives an indication of how important receiving an inheritance is for many in the UK – young and old. That lump sum will allow them to make significant life decisions and help them accelerate achieving some of their financial plans that may have taken years to achieve otherwise.”
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