One in ten (10%) UK parents over 55 are no longer planning to pass on wealth to their children after realising how much their cost of care in the future could be, new research from Killik & Co has found.

However, when looking at the UK population as whole, the findings indicated that 20% of those who may potentially receive inheritance have said they’d prefer their loved ones to spend the money on themselves in later life, rather than it being gifted to them.

Killik & Co suggested that decision over when and how much to gift is a “conundrum” that many individuals in later life face. Its study, which survey 2,020 UK adults, reveals that 30% of parents over 55 are looking forward to being able to support their loved ones financially. By contrast, however, 6% said they would prefer to spend their money on themselves, although feel obliged to pass it on.

Furthermore, the study indicated that one in seven (14%) over-55s do think about the cost of future care but don’t know what their options are for care, while 13% regularly think about the cost of future care but say it feels like too big an issue to deal with.

Killik & Co Head of Wealth Planning, Shaun Robson, commented: “It may feel selfish, but when thinking about your financials it’s essential you put yourself first. The instinct is often to gift when you feel your loved ones need it, or when they’re going through a life event like buying a house or getting married. But it’s essential you understand your own financial situation first.

“Seeking financial advice will help you understand how you can support yourself, and your loved ones, in a way that’s suitable for all. Your future will be mapped out financially and clear plans will be put in place so you know that you’ve covered yourself for any future unknowns before supporting those around you.”

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