Almost one in two Britons (45%) are putting their life on hold, saying that they are unable to afford to pay for big costs like mortgages and further education without the aid of inheritance according to new research from Engage Mutual.
At a time when households are spending nearly one third of their disposable income on essentials*, the chances of getting on the property ladder or paying for a child's education are becoming unaffordable dreams for many Britons.
At the moment one in ten British adults dismiss being able to own a property unless they inherit money (11%) and almost one in four say that they would be able to pay off their mortgage with the help of an inheritance (23%).
With previous research from Engage Mutual showing that 54% of retirees are struggling to make ends meet, and 7,900 pensioners being declared bankrupt in 2007 **, many Britons may not receive the financial lifeline they are looking for from inheritance. This raises alarm bells over their financial expectations.
Top Ten Unaffordable Costs without Inheritance
|
Rank |
Unaffordable Opportunities |
% UK |
| 1 |
Pay off the mortgage |
23% |
| 2 |
Buy a second / holiday home |
21% |
| 3 |
Travel around the world |
19% |
| 4 |
Buy a new car |
17% |
| 5 |
Go on holiday |
16% |
| 6 |
Give up work |
15% |
| 7 |
Retire |
12% |
| 8 |
Get on the property ladder |
11% |
| 9 |
Pay for my children to go to private school |
10% |
| 10 |
Train to start a new career |
6% |
As part of its ongoing 3GB research which examines the role that money has to play in family relationships, Engage Mutual questioned a GB representative sample of almost 2,000 adults to uncover the importance of an inheritance.
further findings
-
owning a home: Currently more than one in ten, 11% of Britons say they are unable to get on the property ladder without inheritance. Almost one in five 25 to 34 year olds would require an inheritance as a way onto the property ladder (19%) but perhaps more worrying is the fact that 6% of 45 to 54 year olds still don't feel able to buy a home unless they inherit money. People in the South West are twice as likely to require an inheritance to get onto the property ladder (22% compared to 11%).
-
affording retirement: 12% of British adults have written off being able to afford to retire unless they receive an inheritance. Eight percent of people over 55 are still waiting for inheritance in order to be able to afford to retire.
-
achieving dreams: Many Britons see inheritance as a way to make their dreams come true. One in seventeen say that they will only be able to afford a career change if they receive an inheritance (6%) and almost one in five will only be able to afford to travel the world if they receive an inheritance (19%). Three percent will not be able to afford their own wedding without an inheritance.
-
very few well-off: Whilst just eight percent consider themselves to be well enough off to afford what they need without an inheritance from family members, the Welsh are those most likely to say that they need an inheritance to cover costs (57%).
Karl Elliott, 3GB spokesperson for engage Mutual Assurance said:
"Our previous 3GB research has shown that Britons are already struggling to pay for everyday costs like bills and the household shopping, so we wanted to know how they could afford larger items like paying off their mortgages. It is worrying that so many people have to depend on inheritance to be able to pay for these things.
Whilst inheritance can be a great financial help it is not something we can control. We encourage people to take control of their families' futures and save little and often; even £10 each month could make some difference in the long run. Engage provides a number of simple and straightforward savings and investment schemes which can help parents to save for themselves and their children, so that they know they have something to fall back on."
footnotes
*Times Online, 7th May 2008, http://business.timesonline.co.uk/tol/business/money/consumer_affairs/article3885614.ece
**BBC Online, 30th September 2007, http://news.bbc.co.uk/1/hi/business/7021372.stm
engage Mutual Assurance can be contacted on 0800 169 4321 or by visiting www.engagemutual.com
The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.
notes to Editors:
- this research was undertaken by YouGov on behalf of engage Mutual Assurance. The survey was conducted between the 29th April and 1st May 2008 across a representative GB sample of 2,022 adults.
- if using this article on a website, please link to www.engagemutual.com using the following hyperlink text: engage Mutual Assurance - meeting the changing needs of todays modern families
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engage Mutual Assurance is a trading style of Homeowners Friendly Society (HFSL) and it's wholly-owned subsidiary engage Mutual Funds Limited (EMFL).
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engage Mutual Funds Limited (EMFL) is a provider of the Child Trust Fund direct and in partnership with partners including Legal and General, ASDA and Debenhams stores.
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engage supports mutuality, friendly societies and the regional financial services industry through links with the Association of Mutual Insurers, the Association of Friendly Societies, Mutuo and Leeds Financial Services Initiative.
- established in 1980, Homeowners Friendly Society Limited (HFSL) is Registered and Incorporated under the Friendly Societies Act 1992, Reg.No.964F, it's wholly owned subsidiary engage Mutual Funds Limited (eMFL) is Registered in England No 3224780. Both are authorised and regulated by the Financial Services Authority (FSA).
- Homeowners Friendly Society Limited's FSA Register number is 110072 and engage Mutual Funds Limited's FSA Register number is 181487. You can check this on the FSA's Register by visiting the FSA's website www.fsa.gov.uk/register or by contacting the FSA on 0845 606 1234
