Leaving an inheritance is not a key objective for Baby Boomers, new research from Just Group has revealed.
The top retirement objective for people aged between 60 and 78 was to spend more time with friends and family, with nearly 46% citing this. It was closely followed by travel abroad (37%) and travel in the UK (36%), as well as pursuing new hobbies and interests (34%).
Only one in five (20%) chose leaving an inheritance as one of their top five goals for retirement, although 18% chose helping children and grandchildren with their finances.
Just Group said just 3% of homeowners envisaged buying a different main home, while 20% said they wanted to renovate their home.
Overall, 4% chose moving abroad and the same proportion chose study/education. Just 1% wanted to start a business and the same number planned to buy a property to rent out.
Stephen Lowe, group communications director at Just Group, said: “Inheritance and estate taxes are hot topics, but the research suggests that leaving money is not high on the retirement agenda of most Baby Boomers.
“Even among the oldest in this group, those aged 70-78, and those on the highest household incomes, still only about a quarter put leaving cash as one of their top priorities. Almost the same proportion (18%) who want to leave an inheritance say they want to provide financial help to children or grandchildren while still alive.
“Overall, the priority of most seems to be to kick back and relax by spending time with friends and family or pursuing travel and hobbies.”
While Baby Boomers are often seen as the most financially privileged generation, the research suggests an awareness among this group that they have finite resources that will mostly be used up during their remaining lifetime. While 70% own their own homes, around one in seven still have mortgages.
Furthermore, longevity increases during their lifetimes mean they face more years in retirement, leading to higher costs, particularly if they need professional care later in life, Just Group said.
Lowe added: “The wealthier tiers are quite comfortable, but the bigger picture runs against the common perception that Boomers are awash with dosh. The reality is that most Boomers are going to need to be careful with their cash and probably feel leaving money is a hope and not an expectation.”
