The majority (94%) of financial advisers (IFAs) believe that parents aged-55 and over with assets totalling £650,000 or more could benefit from spending more strategically in order to reduce potential inheritance tax (IHT) bills, Titan Wealth has found.

The firm’s latest research revealed that while 92% of this group are confident in how they can afford retirement, 49% would be willing to spend or gift earlier if they were confident knowing that it would not affect their long-term financial security. A further 37% would be open to increasing spending or bringing gifting forward.

Meanwhile, two thirds (66%) believe financial gifts are most impactful when helping children or grandchildren onto the property ladder, highlighting an opportunity to better align financial confidence with more timely support.

Titan Wealth said IFAs see this dynamic play out in practice, with 68% stating that clients frequently retain wealth for inheritance that could have had a greater impact if gifted earlier, while a further 17% observe this very frequently.

The firm said this tendency to hold back is reflected in the underlying behaviours shaping financial decisions in later life, with 28% of over-55s stating their desire to preserve wealth for inheritance is influencing how much they spend in retirement, with 26% of IFAs identifying this as a contributing factor.

Titan Wealth also found that evolving IHT rules are also prompting a shift in how this group approaches wealth decisions in later life.

According to IFAs, the most common sources used for gifting are general investment accounts (56%), cash savings (54%), defined contribution pensions (42%) and investment bonds (40%).

In response to IHT exemption changes, 39% of over 55s have already begun adjusting their estate planning, with 33% expecting to take action.

The financial planning firm said this growing engagement suggests an increasing willingness to revisit how wealth is structured and passed on, "creating an opportunity to integrate more proactive gifting" alongside longer-term inheritance planning.

Chartered financial planner at Titan Wealth, Lee Quinn, stated: "Strategic spending and earlier gifting in retirement are effective but underutilised ways of reducing future IHT liabilities – and improving clients’ life experiences. While the vast majority of people approaching or in retirement are confident they know how much they can afford to spend in their later years, half would spend and gift more if they were happy it wouldn’t affect their security in the long-term. As financial planners, it’s vital that we understand our clients’ priorities for expenditure during retirement, taking their concerns seriously but balancing it with effective planning.

"People have worked diligently throughout their lives, saving for retirement, so it’s always important to make sure the hard-earned money is used effectively to cover day-to-day life or even the unexpected health costs that may come later in life, but that it’s also spent and gifted in an enjoyable way. Having a good understanding of how much you can afford to contribute to your grandchild’s first house or to spend on your bucket list holiday will only add to the joy."

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