The extent to which younger people rely on inheriting money from older generations varies widely and is influenced by a multitude of factors. In some cases, younger individuals may benefit from inheriting wealth, which can provide financial stability, opportunities for education, or assistance in achieving life goals such as homeownership or starting a business. However, it is essential to recognize that not all younger people rely on inheriting money, as many are driven by their own ambitions, education, and work ethic to build their financial futures independently.

While inheritance can offer a financial safety net, societal trends also indicate a shift in priorities among younger generations. Many millennials and members of Generation Z are known for valuing experiences, education, and personal fulfillment over material wealth. Factors such as rising education costs, economic challenges, and changing job markets may influence younger individuals to focus on self-reliance and the pursuit of their own passions and careers.

FOUR IN TEN MILLENNIALS COMPLAIN OF “SPENDTHRIFT” ELDERLY PARENTS, WITH A THIRD BELIEVING THEIR INHERITANCE IS AT RISK

New research of Britons in their thirties and forties suggests as many as one in three (30 percent) are concerned their inheritance is at risk – with 32 percent saying they do not trust their parents not to fritter it all away.

In fact, 41 percent of those polled by digital wealth manager, Moneyfarm went so far as to call their mum and dad “spendthrifts”, with almost a fifth (19 percent) believing their parents aren’t thinking enough about their children’s or grandchildren’s financial futures.

It’s no surprise then that nearly four in ten (35 percent) of Britons aged between 35 and 50 believe that it’s their parents’ responsibility to provide for them through inheritance, something that just 23 percent of older Britons (aged 65+) agree with.

These contrasting views inevitably lead to tension with 17 percent admitting to having arguments with their parents about the money they are hoping to inherit.

Twenty-one percent say they see red when their parents splash out on expensive items and essentially spend ‘their’ money, with a third (35 percent) admitting that if their parent’s splurge on multiple holidays a year it would make their blood boil.

Buying clothes (31 percent), taking luxury holidays (31 percent) and buying cars (29 percent) also annoy younger Brits.

Despite the arguments, six in ten (60 percent) over 65s say they are scrimping as much as possible to save for their children and grandchildren, with two thirds (66 percent) regularly paying money into a savings account.

Seventeen percent have reduced the number of holidays they take, while 16 percent say they are planning to work past their official retirement age – all in a bid to build up a meaningful financial legacy.

Yet seven in ten (70 percent) of 35- to 50-year-olds say they are regularly putting money away in case their parents’ inheritance doesn’t match up to expectations.

Chris Rudden, Head of Investment Consultants at digital wealth manager, Moneyfarm, which commissioned the research said: “In a world where the price of assets; mainly house prices and the global stock markets, have increased far more than wages over the last 20 years, younger generations are now generally poorer than their parents’ generation.

“This combined with the fact that wages have also struggled to keep pace with inflation in recent years, means that 35- to 50-year-olds are likely to be far more reliant on a future inheritance than previous generations.

“If millennials are to financially succeed in the long-term it is crucial they plan for their future because they may not be inheriting as much as they are expecting. Equally, if it is the desire of the older generation to leave an inheritance, they need to plan carefully in order to leave anything meaningful.”

The study also found that millennials don’t think they should have to wait for their inheritance, with four in ten (46 percent) believing that their parents should gift them money early.

Paying off a mortgage (18 percent), financing their own retirement (17 percent) and providing a nest egg for their own children (13 percent) are the main intended uses for inheritance, according to Brits.

Given the contentious nature of inheritance, it’s little wonder that 16 percent say they have fallen out – or can foresee falling out – with a family member who is trying to claim more than their fair share.

Over half (52 percent) have argued with a brother or sister, while 27 percent have clashed with their own mum about a future pot of money.

However as many as eight in ten (79 percent) of older Brits plan to leave everything to their children, with 72 percent splitting it equally between them.

Just one percent confessed that the split between their children wouldn’t be equal because one of them struggles more financially.