Retirees accused of ‘blowing’ their children’s inheritance
NEW research from the US reveals that while one in six people are relying on inheritance from their parents, equally, one in six retirees are looking to their grown-up children to support them financially in their old age, causing a generational financial tug of war.
The study by international financial services group SunLife says parents and children are banking on financial support from each other: one in six children are relying on inheritance from their parents; one in six parents expect their children to support them when they retire; and one in 10 adult children say their parents are blowing their inheritance.
The research also reveals that as a percentage of income, older people are better off than younger generations.
Those aged 55-70 have less than half (46%) their income allocated to fixed costs, compared to 57% for 18-24-year-olds, 53% for 25-44-year-olds and 51% for 45-54-year-olds.
"Long gone are the days when pensioners spent their retirement doing crosswords and gardening. Nowadays, the over 60s are just as likely to be skiing as sewing," says SunLife's Ian Atkinson.
"In fact, independent research has found that among those aged between 65 and 74, spending on travel increased by 93% between 2002 and 2012 and this is clearly bothering some people, with one in 10 complaining that their parents are having too much fun with their 'inheritance'."
Furthermore, Mr Atkinson said, recent research has warned that middle-aged people can no longer rely on an inheritance as they will be almost retired before they receive any money.
"By assuming we will get financial support from our families rather than making financial plans of our own, many of us are leaving our financial futures uncertain," he said.