Potential care costs are the biggest retirement concerns among over-55s, new research suggests.
A survey of 2,174 UK adults, conducted by YouGov for UK wealth management firm Mattioli Woods, highlights that that while over-55s are increasingly focused on the rising cost of later-life care, many are overlooking inheritance tax planning that could materially impact the wealth they pass on.
When asked about their biggest concerns in passing on assets, over-55s ranked paying for care or later-life costs as their primary worry. They placed it above inheritance tax, the risk of running out of money in retirement, ensuring fairness between beneficiaries, and potential family disputes.
Despite inheritance tax featuring prominently among financial concerns, many remain unprepared. Almost a quarter (23%) of those surveyed say they have never assessed whether their estate could be subject to inheritance tax.
Yasin Patel, wealth management director at Mattioli Woods, said: “People naturally worry about whether they’ll have enough money to fund later-life care, particularly as people are living longer and care costs continue to rise. For many families, maintaining financial independence in retirement understandably takes priority over what happens to their estate afterwards. But focusing solely on funding later life can mean Inheritance Tax planning slips down the priority list.”
The survey also suggests confidence in estate planning is mixed. Just 41% of those surveyed believe their current arrangements would minimise inheritance tax, while nearly a quarter (23%) are not confident their plans would reduce any future liability.
Regionally, respondents in the South East (27%) reported the lowest confidence in their estate planning to minimise inheritance tax, followed by Yorkshire (25%) and the South West (24%).
Those in the North West felt best prepared, followed by the East Midlands and the East of England.
