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1 in 5 people in the UK prioritise leaving family an inheritance when setting out long-term financial goals

Over one in five (21%) of UK adults say leaving something behind for their family is a priority for them, according to research from modern mutual Scottish Friendly.

The findings form part of Scottish Friendly’s 2024 Family Finance Tracker, which examines the savings and investment habits of 2,600 adults across the UK. The study shines a light on the reality of people’s financial situation and their financial aspirations.

Conducted by the Centre for Economics and Business Research (Cebr) on behalf of Scottish Friendly, the research findings show that the three most commonly cited long-term priorities are retiring early (22%), leaving an inheritance (21%), and paying off the mortgage early (20%).

A sizeable chunk, 17%, stated that they do not have any long-term financial goals. Meanwhile, 59% of all the research participants said that they know what assets they want to pass on:

  • 72% expect to be able to pass on the family home

  • 55% want to pass on a cash lump sum

  • 32% want to pass on their pension

  • 30% want to pass down family heirlooms

  • 17% want to pass on an investment portfolio

  • 17% want to pass on a property portfolio

  • 9% want to pass on a business.

The research also reveals that people renting property are amongst the least likely to plan for wealth transfer and often experience greater financial discomfort compared to homeowners.

 Jill Mackay savings specialist at Scottish Friendly, comments: "These findings highlight the significant value people place on leaving a lasting legacy for their loved ones."

"With over one in five prioritising an inheritance in their long-term financial planning, it's evident that securing their family's future is a key concern. This is reflected in the broad range of assets people intend to pass on, from family homes to investment portfolios.”

"Conversely, the findings also highlight the challenges faced by families not on the property ladder. Renters, particularly those entering or living through retirement, may need a larger savings cushion to manage daily expenses, making wealth transfer seem daunting. However, it’s possible, even small, consistent investments over time can accumulate, enabling people to pass on a meaningful cash inheritance to their family.”

For interview requests and photos, please contact Sam Prince in the first instance.

Contacts details:

Sam Prince

MRM London

07471351584 / [email protected]  

 

Notes to Editor:

The research was conducted by the Centre for Economics and Business Research (Cebr) and 3Gem. Comprised 2,600 UK adults aged between 18 years and 65+. Short-term financial goals were described to participants as being goals up to 6 months ahead, medium-term as being between 6 months to 5 years ahead,  and long-term as 5+ years ahead.

The questions pertinent to this announcement are pasted in below.

Q18. Which, if any of the following are currently your highest priority long-term financial goals e.g. 5+ years?

·        Retiring early

·        Leaving my family an inheritance

·        Paying off my mortgage early

·        Saving a lump sum for my child/grandchild

·        Moving abroad or travelling

·        Paying for my own long-term care

·        Buying  a first property

·        Starting a business

·        Buying a second property

·        Paying for long-term care for relatives

·        Other

·        None of these

·        Don’t know/ I don’t have long-term financial goals

 

Q22. Thinking about your long-term financial goals do you have plans to pass on your wealth to someone when you die?

 

Q23. Which of the following financial assets do you intend to pass on?

·        Family home

·        Cash lump sum

·        Pension

·        Family heirlooms (e.g. jewellery, antiques, furniture etc)

·        Investment portfolio

·        Property portfolio

·        A business

·        Other

·        Don’t know

 

About Scottish Friendly

Scottish Friendly is a leading UK mutual life and investments organisation. It provides investors and their families with a wide range of investment and protection solutions and provides life and investment products and services to other financial organisations.

Scottish Friendly has roots stretching back to 1862. Established as the City of Glasgow Friendly Society, its name changed in October 1992 when it took over Scottish Friendly Assurance.

The Group continues to flourish through a three-part growth strategy of organic growth, mergers and acquisitions, and business process outsourcing.

www.scottishfriendly.co.uk

Scottish Friendly, Galbraith House, 16 Blythswood Square, Glasgow, G2 4HJ

Scottish Friendly Assurance Society Limited. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Scottish Friendly Asset Managers Limited.  Authorised and regulated by the Financial Conduct Authority.

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