Recent research conducted by digital wealth manager Moneyfarm sheds light on millennials’ concerns regarding their parents’ spending habits and the potential impact on their inheritance.
The study, which surveyed 1,000 individuals aged 35-50 and another 1,000 aged 65 and over, revealed that 30% of adults in their 30s and 40s believe their inheritance is jeopardised due to their parents’ spending tendencies.
A significant 41% of millennials characterised their parents as “spendthrifts” who habitually splurge money. What’s more, 19% of respondents perceive their parents’ spending as selfish, neglecting the financial security of their offspring and grandchildren. This perception divide often leads to conflict, with 17% admitting to engaging in heated arguments with their parents regarding potential inheritances.
21% express frustration when their parents indulge in expensive purchases, particularly when it’s perceived as utilising future inheritances. 35% would be angered by their parents’ frequent extravagant holiday spending. 70% of individuals aged 35 to 50 acknowledge actively saving money as a precaution in case their anticipated inheritance falls short. 40% of respondents aged 40 and above express no intention of excessively accumulating wealth solely for their children’s inheritance. Chris Rudden, head of investment consultants at Moneyfarm, told the Express:
“In a world where the price of assets; mainly house prices and the global stock markets, have increased far more than wages over the last 20 years, younger generations are now generally poorer than their parents’ generation.
This combined with the fact that wages have also struggled to keep pace with inflation in recent years, means that 35 to 50 year olds are likely to be far more reliant on a future inheritance than previous generations. If millennials are to financially succeed in the long-term it is crucial they plan for their future in case they may not be inheriting as much as they are expecting.
Equally, if it is the desire of the older generation to leave an inheritance, they need to plan carefully in order to leave anything meaningful.”
One Response
It is not just Millenials who have this point of view when it comes to inheritance! I have witnessed many conversations around the subject of inheritance. Sadly it seems to change some peoples’ attitudes when they know in advance they will inherit.
Some people are looked at as ‘cash cows’ and relationships appear to be purely based on what they can get – a friend was waiting for an elderly uncle to die because he promised to leave his considerable estate to them. People also ask for their inheritance up front! Also, those waiting to inherit sometimes become careless and squander their money and hope their inheritance comes soon! How very sad. Hopefully I get to enjoy the results of over 40 years struggle and hardwork.