New research from St. James’s Place indicates that 62% of UK adults aged 55 to 85 with £50,000 or more in investable assets are concerned that high inflation will erode the £192,000 they plan to transfer to loved ones.
Additionally, many respondents expressed anxiety about the possibility that their wealth may now be needed to cover other expenses, such as social care and retirement, impacting their transfer intentions.
Claire Trott, divisional director for retirement and holistic planning at St. James’s Place, commented on the issue, stating: “The Great Wealth Transfer is widely anticipated, with younger generations expected to receive substantial lump sums over the next few years as Baby Boomers look to pass on their wealth. However, it’s clearly a difficult financial environment at present, and this is impacting most of society.”
She also highlighted the significance of financial advice in navigating these challenges, adding: “To navigate this environment, and maximise the amount that can be passed on, it’s advisable to prepare as much as possible, and financial advice can make a huge difference to this. Passing on wealth to the next generation can be hugely beneficial, but it requires careful planning, and it can pay to start this process early.”
Trott underscored the importance of considering available options to protect wealth from taxes and other factors that could diminish the value of transferred assets, such as pensions and trusts.
