Around two in five people (38%) who expect to inherit money say that they need it to fund their retirement, a study from Hargreaves Lansdown has found.

According to the research, more than one in four people are expecting an inheritance or have already received one (29%).

This percentage relying on an inheritance peaks in the years before retirement, those aged between 55 and 64, at 45%. Around half of parents with children living at home (47%) also said they need an inheritance to live on in retirement.

Hargreaves Lansdown’s figures, based on a study of 2,000 people, also revealed that women are more likely than men to need their inheritance for retirement – 41% compared to 35%.

Senior personal finance analyst at Hargreaves Lansdown, Sarah Coles, said that people banking on an inheritance to fund their retirements could be in for a “nasty surprise”.

“We can’t accurately predict how life will turn out for our loved ones,” Coles said “They might end up needing expensive care, which will eat through an inheritance in no time. Alternatively, they may want to spend their money enjoying their retirement to the full. It could leave you with far less than you were expecting, and in some cases, you could end up with nothing at all.

“There are plenty of people who change their mind about who they leave money to, whether that’s because of changes in their relationships with potential beneficiaries, because they meet someone they want to prioritise, or because they change their attitude to inheritance and want to leave money to charity.

“You may have overestimated what they have to leave anyway. If they’ve used equity release to dip into the value of their home, for example, the debt and interest that has rolled up may mean they have little of it left to leave. Depending on their circumstances, the taxman may take a slice too.

“Even if you receive every penny you expect, you have no idea when it might arrive. If they live well into their nineties you could be 70 before you see a penny. The last thing you want is to be waiting for the death of a loved one to let you do the things you want during your golden years.”

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