People in eastern and southern England are particularly likely to receive an inheritance, while those in the Midlands are most able to leave a gift during their lifetime, a survey suggests.
A YouGov survey found that over half (53%) of people in eastern and southern regions have already received an inheritance, compared with 52% in the Midlands and northern England, and 46% in London, according to research commissioned by financial advice and wealth management business Quilter.
A third (33%) of respondents in the Midlands had gifted wealth to others, as had 31% in northern England, 27% in the East and South and 26% in London.
Quilter said that as the economic impacts of Covid-19 become more acute, the amount of wealth flowing through generations will be a lifeline.
It said that as regions take different paths on lockdown measures, the financial impact on families in different regions will vary drastically.
With younger generations often likely to feel the financial strain, Quilter is urging families to make a financial plan to understand what support they can provide.
Ian Browne, a retirement planning expert at Quilter, said: “Gifting between the generations is increasingly a lifeline for younger people as they struggle to get on the housing ladder, pay for education and deal with the ever-increasing expenses of living. And now they must do all that while facing another recession.
“Meanwhile, older generations, particularly baby boomers, have benefited from an astronomical increase in housing prices, among other things.
“However, it is vital that helping the younger generations doesn’t come at the expense of their own retirement funds and so there is a careful balancing act to figure out if you can afford it.
“As a rough guide we encourage people to look at the Pension and Lifetime Saving Association’s retirement living standards to get an understanding of how much they will need in later life. It is also important to come up with a plan and the associated costs of social care needs.
“For those that can afford to gift, it’s vitally important to consider the various inheritance tax and gifting rules. When in doubt speak to a professional financial planner who can help you set up a proper strategy that is suitable for you.”
More than 1,500 people were surveyed.
More information about the Pension and Lifetime Saving Association’s retirement living standards is available at retirementlivingstandards.org.uk.