06 January 2017
Young Britons ‘more likely to receive an inheritance’
Younger Britons are much more likely to receive an inheritance than previous generations, a new study has revealed.
According to the latest research from the Institute for Fiscal Studies (IFS), three quarters (75%) of people born in the 1970s have received or hope to receive some kind of inheritance. This is substantially higher than the figure of 61% recorded among those born in the 1950s.
The findings can perhaps be explained by rising levels of wealth among older households. The IFS said the average wealth of households containing people 80 or older jumped by 45% between 2002/03 and 2012/13. Stronger house prices and rising home ownership were the main factors behind this.
On the back of this improvement, some 72% of elderly households now expect to pass on an inheritance. A decade ago, the figure stood at just 60%.
Elsewhere, the IFS report suggested that younger generations may find it harder to generate significant wealth of their own. A decline in the use of defined benefit pensions is among the factors which can be blamed for this.