A third (32%) of 40-year-olds would rather their parents used their wealth to fund a comfortable retirement than pass it down to them due to the cost of living crisis, Barclays Wealth has found.
In a survey of 4,000 people of age 40 and their parents in the UK, the bank’s wealth arm found disparities in their financial plans.
Nearly all (99%) parents said they planned to pass on wealth either to their children or grandchildren, with 37% looking to gift money this year to help their families with rising costs.
Yet a third of millennials would rather see their parents prioritise their own future, as Barclays Wealth discovered that 36% of those among the older generation are worried about funding for care needs in later life.
A further 31% are concerned about meeting their immediate living costs and 19% are looking to downsize as a result.
Conversations around succession are still very much taboo for many families, as 38% of parents have not told their children about their inheritance plans and 25% do not have a strategy to protect their children’s inheritance should they get a divorce.
Clare Francis, director of savings and investments at Barclays Wealth, said: “Many people want to do what they can to ensure they maximise the amount they leave to their family and minimise inheritance tax, but working out how much you can afford to give away during your lifetime isn’t easy.
“With finances being stretched in all directions, it can be incredibly stressful if you want to support your children in the short term, while making sure you don’t find yourself struggling further down the line.
“Even though most children would be very grateful if their parents are able to pass on some inheritance while they’re still alive, they wouldn’t want them to have money worries in the future as a result. This is why it’s not only important to plan, but also to include your family in any conversations – it can make such a difference and help remove some of the pressure many parents feel when thinking about how and when they’ll pass on their wealth.”