£1.1 trillion will be left to beneficiaries by 2047, the peak of leaving an inheritance, according to a new report by HSBC.
Its Age of Inheritance Report indictes that, based on increasing life expectancy estimates, inheriting wealth is set to peak in 2047, with levels of windfalls after this date falling back significantly. This is compared to just £194 billion in 2015 and halving back down to £552 billion by 2062.
HSBC says this increasing longevity of the average Briton’s life and the associated delay in leaving an inheritance is having a two-fold effect on reducing windfalls for future generations. Firstly, living longer means more wealth will be used to simply meet the cost of living. Secondly, the age at which people receive an inheritance is getting later, and less likely to be in the life stage where it is a priority to accumulate assets and store wealth, such as reducing mortgage debt or long term investing.
The banks says its research shows the older you are in receiving an inheritance the more of it you will spend on goods and services which store no value such as holidays and a more luxurious lifestyle.
David Wells, head of investments, pensions and savings at HSBC, said: “The findings of this report serve to highlight the importance of financial planning
