More than two thirds (65 per cent) of under-45s in the UK expect to receive an inheritance gift of wealth from family or friends to fund their financial goals and get on the property ladder, according to new research.
Millennial and Gen Z adults are increasingly relying on the transition of wealth between generations to save for the future, amid rising living costs and an untenable house price boom.
Just under a third (32 per cent) of those who have already or expect to receive an inheritance or lifetime gift directed the funds to their savings or pension, according to research conducted by Opinium on behalf of Fidelity.
A quarter (24 per cent) have used the money to pay off a mortgage, while 22 per cent have used the funds to join the property ladder – figures that highlight the extent to which the bank of mum, dad and grandparents is fuelling the housing market.
Other plans include paying for one-off expenses or ‘luxury’ items (18 per cent), paying off debts (17 per cent) or student loans (9 per cent), or simply funding-to-day expenses (14 per cent).
Despite their expectations from older generations, 57 per cent of under 45s worry they will not be able to pass on an inheritance while maintaining their own standard of living – although 55 per cent still intend to try.
“Buying a home and saving for retirement are considered two of the most significant milestones upon the road to financial security,” said Dawn Mealing, head of advice policy at Fidelity.
“However, our research highlights just how many of the UK’s younger generations are counting upon the passing down of wealth from family and friends to achieve them.”
It comes as the average price for a home surged 5.7 per cent year-on-year in July, showing that demand is still running hot in the housing market despite July being the first month of the stamp duty holiday taper.
On a monthly basis, prices rose 0.7 per cent in July, easing slightly from 0.8 per cent in June, according to the same set of data from property search site Rightmove.