Published: 12 October 2018
An unprecedented transfer of wealth between generations is set to take place over the coming years as more baby boomers enter retirement.
The average person aged 55 to 64 – those who emerged from the spike in the birth rate that followed the Second World War – has accumulated wealth of almost £220,000, according to the Institute for Fiscal Studies1. The figure, which excludes pensions but includes property, was based on analysis of 15 years of saving and spending habits.
The research also found that the majority of baby boomers’ wealth is unlikely to be spent. Leaving their children in line to inherit around £100,000 each - based on each boomer household splitting the sum between two children - even if it will be many years before they receive it.
Taking control of what happens to your wealth when you pass away entails addressing the subject of death - not something people generally like talking about with their family. But the conversation and resulting outcome for your loved ones is likely to be simpler and less painful for everyone involved if you’re prepared to plan ahead.
This is provided for general information only and takes no account of personal circumstances. It is not a recommendation to buy or sell. It is provided solely to support you in making your own investment decisions. If you have any doubts as to their suitability you should seek expert advice. Alliance Trust Savings does not give financial or investment advice.
Laws and tax rules may change in the future without notice.
Please be aware that the value of investments can fall as well as rise so you could get back less than you invest.
1 IFS, Retired people look set to bequeath rather than use most of their wealth, 11 June 2018
2 Money Advice Service, How much does a funeral cost?
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