A fifth of young people are relying on inheritance instead of a pension, according to a recent survey. The Bank of Mum and Dad is becoming the primary source of income for an increasing number of young workers and savers. The survey, conducted by Lime Solicitors, found that 20% of 25 to 34-year-olds expect to need family money to buy a home, while the same proportion are counting on an inheritance to fund their retirement. This trend is particularly pronounced among those born between 1997 and 2000, with 23% expecting to rely on parental help to pay off their mortgage and 21% wanting their inheritance while their parents are still alive. The same proportion also expressed concerns about their quality of life without it. Furthermore, 17% of respondents said they relied on family money to make ends meet, in contrast to over half of people aged 55 and older who said they did not need any inheritance to achieve their financial goals. As the intergenerational wealth gap widens, young people are facing a drastically different economic climate than their parents. With rising costs of living and little hope of becoming homeowners independently, many are turning to inheritance as a means of funding their futures. However, experts caution against too much reliance on the Bank of Mum and Dad, as inheritance is not guaranteed and can be unpredictable due to high costs of care in later life. Wealth managers have also noticed a rise in clients giving money away before they die, which can provide benefits during their lifetime rather than leaving all assets to be passed on at death.
