Later-life care costs have become the top concern among over-55s when passing on wealth, research from Mattioli Woods has revealed.
Respondents ranked paying for care or later-life costs as their primary worry, ahead of inheritance tax, the risk of running out of money in retirement, ensuring fairness between beneficiaries and potential family disputes.
By contrast, Mattioli Woods said priorities shift among younger age groups. Those aged 35 to 44 are most concerned about paying too much inheritance tax, while those aged 45 to 54 are most worried about running out of money during their lifetime.
Despite inheritance tax featuring prominently among financial concerns, the research highlighted a lack of preparedness. Almost a quarter (23%) say they have never assessed whether their estate could be subject to inheritance tax, while 22% believe it will be.
Confidence in estate planning is also mixed. Four in 10 (41%) believe their current arrangements would minimise inheritance tax but 23% are not confident their plans would reduce any future liability. Those in the South East (27%) reported the lowest confidence in their estate planning to reduce inheritance tax.
Yasin Patel, wealth management director at Mattioli Woods, said: “People naturally worry about whether they’ll have enough money to fund later-life care, particularly as people are living longer and care costs continue to rise. For many families, maintaining financial independence in retirement understandably takes priority over what happens to their estate afterwards. But focusing solely on funding later life can mean Inheritance Tax planning slips down the priority list.
“Good estate planning isn’t simply about reducing tax. It’s about making informed decisions, ensuring assets pass to the right people in the right way and giving families greater certainty during what is often an emotional and stressful time. Starting these conversations earlier gives families more options – whether that’s reviewing wills, making lifetime gifts where appropriate, or understanding how pensions fit into an estate.”
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