Younger people are holding back from major life decisions, such as buying a home, starting a family or dealing with debt, until they inherit wealth from their parents or grandparents, a survey by Killik & Co has suggested.
The survey, which polled 1,000 individuals, found three-fifths (59%) of under-35s felt unable to buy their first home before receiving an inheritance, while almost a quarter (22%) said they were postponing starting a family.
The investment house said the survey results showed a “disturbing disconnect” between the expectations of younger and older generations when it comes to wealth transfer.
It found fewer than one-in-10 (7.6%) of over-65s planned on passing on the majority of any inheritance during their lifetime, while twice as many (17%) under-35s expected to receive an inheritance.
Though the survey found three-quarters (73%) of those who expected to receive an inheritance believed it was essential for their financial security, it also revealed the extent to which families often avoid the conversation.
Indeed, the survey found only one-fifth (21%) of those due to inherit wealth believed a conversation about any inheritance between themselves and their elder family members had taken place, while two-fifths (40%) of grandparents and parents felt that they had discussed arrangements for their estate.
Killik & Co head of wealth planning Svenja Keller said: “Our survey results show that families are not communicating properly when it comes to discussing how to pass on an inheritance.
“Younger people think they will receive their inheritance sooner, while older people do not realise the extent to which a delay in transferring wealth impacts the lives of other family members.”