UK Inheritance Tax to peak in 2047
18/10/2011
The Age of Inheritance Report, published by HSBC, predicted the average amount left as inheritance will increase to an all-time high of £238,000 in 2047, compared with £46,000 today.
It added that windfall levels after this date will fall back significantly, citing two reasons why this will happen.
Firstly, living longer means more wealth will be used to simply meet ongoing costs.
Secondly, the age at which people receive an inheritance is getting progressively later and less likely to be in the life stage where it is a priority to accumulate assets.
The study revealed that eight out of ten people over the age of 35 today expect an inheritance from their parents.
However, the data showed that only four in ten people over the age of 55 have actually received an inheritance, suggesting people are overly-optimistic about their windfall chances.
David Wells, head of investments, pensions and savings at HSBC, said: "The findings of this report serve to highlight the importance of financial planning, both for those who plan to bequeath an inheritance and for those who are likely to be in receipt of one.
"Wealth needs to be carefully managed so that the value is not eroded before it can be passed down to future generations. Many of us will be reliant on an inheritance to achieve the lifestyle our parents have enjoyed," he added.
