The median inheritance in the UK is just £11,000, according to analysis from the Office for National Statistics, which showed the most common age to inherit is between 55 and 64.
Average inheritances for these older adults (55 to 64) tended to be higher, with a median value of £33,000. The second-highest value was for those aged 65 years and over, for whom the median was £20,000. This was compared with £4,000 for those aged 16 to 24 years and £5,000 for those aged 25 to 34 years.
The analysis focused the on Wealth and Assets Survey (WAS) data covering July 2014 to June to 2016, and also showed that higher income earners – perhaps unsurprisingly – tended to receive far more than their lower-earning counterparts.
However, inheritances were particularly important for those on lower incomes. Inheritance made up 44 percent of total net wealth for the least wealthy 20 percent, and just 5 percent of net wealth for the wealthiest 20 percent.
Nathan Long, senior analyst at Hargreaves Lansdown said unfortunately for poorer households, inheritances were difficult to plan for and unreliable.
“With people living longer and inheritances likely to be increasingly gobbled up with paying for social care, we could see their importance dented in the longer term,” he said.
“While people are generally using their inheritances wisely, it is important they plan for their own financial future by squirrelling away as much as they can afford as early on as they can, as this will provide valuable flexibility in later life.”
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