Warning: This is the inheritance error that might wreck your retirement.
ONE IN THREE OF US is likely to inherit a substantial sum from our ancestors, and that money can go a long way toward sustaining a long and happy retirement later in life.
As the cost of living and life expectancy continue to grow, many people rely on inheritance to fund their retirement. However, many younger generations make a critical mistake when it comes to preparing for retirement: they rely on people who came before them.
According to the Office for National Statistics, the most common age at which current 25 to 30-year-olds will inherit money is 61. (ONS).
However, there is a good likelihood that this will change, making reliance on money that does not belong to you increasingly hazardous.
More than 13,000 people survived to be 100 years old in 2019.
This means that their children may not inherit until they are well into their 70s.
Because no one can correctly estimate how long their loved ones will live unless they have major health difficulties or are given a fatal diagnosis, relying on inheritance for retirement needs is much riskier.
The rising cost of care is another important reason why younger generations should not rely on their elders for a substantial money.
Costs of care for the elderly have risen dramatically in recent years, with nursing care costs growing by 15% in the last five years.
Extensive care expenditures might easily exceed £100,000 per year, wiping any inheritance from the family’s slate.
To add insult to injury, according to recent ONS data, household prices have risen faster for pensioners than for any other age group.
After housing expenditures and direct taxes, the average pensioner’s income has remained stable over the last decade.
According to the Departments for Work and Pensions, average total income has increased slightly from £319 to £331 per week.
Things don’t appear to be getting much easier for folks in their golden years any time soon, and this bad luck is likely to be passed down to future generations.
The rumored repeal of the triple lock for pensions will have a significant impact on the incomes of millions of retirees who rely on the state pension to get by each week.
According to some estimations, if Rishi is successful, retirees might lose up to £11,000 each year. “Brinkwire News in Condensed Form.”