14
Oct
2024
A young couple read from an ad in an estate agent’s window.

2 important reasons not to delay your major life milestones until you receive an inheritance and what to do instead

Early retirement, pursuing new hobbies, and travelling the world are just some of the ambitions you may be hoping to fulfil in the coming years. But as costs rise, this might seem more challenging to achieve.

Indeed, Canada Life has revealed that 27% of 18 – 34-year-olds are delaying their long-term goals until they receive an inheritance. Additionally, 19% of people in this age range have used or plan to use an inheritance to buy their first property.

While an inheritance can be a helpful way to progress towards your financial goals, it’s not sensible to rely solely on this type of windfall.

Read on to learn two important reasons not to delay your life plans until you’ve received an inheritance and discover why consulting a financial planner might help you achieve your goals more quickly.

2 important reasons not to delay your goals until you’ve received an inheritance

There are several reasons why waiting for an inheritance isn’t the most sensible way to work towards your goals, including the following.

1. You may be waiting longer than you think to receive an inheritance

As life expectancy increases, most people are inheriting from family members much later in life than they used to. The Institute for Fiscal Studies reports that the average age at which someone inherits from their parents is over 50, and this is set to rise to over 60 in the coming years.

So, you may end up delaying your goals for several decades if you decide to wait until you receive your inheritance to pay for them. This could mean compromising on your lifestyle for many years, which could have a detrimental effect on your overall wellbeing.

Moreover, if your health declines during this time, you might find yourself unable to enjoy the lifestyle you’ve created quite as much as you would have done earlier in life.

2.You may not receive as much inheritance as you anticipate, jeopardising your ability to achieve your goals

It’s not always easy to talk about money with family members, particularly when it’s related to inheritance.

It may be unsurprising to learn, then, that Canada Life reports that 5.1 million Brits who inherited money between 2019 and 2024 did not know how much they would receive beforehand. For 26% of them, the amount they inherited was less than they had anticipated.

If you haven’t had a specific conversation with your family about their estate plans, it’s impossible to know how much you could inherit after they pass away. Moreover, depending on your parents’ circumstances, you may need to settle an Inheritance Tax bill, which could reduce the inheritance you receive.

As such, you could be overestimating how much you will receive. If this is the case, your inheritance may not be sufficient to help you to achieve your goals.

Consulting a financial planner could help you achieve your financial goals

Fortunately, there are other ways you can work towards your long-term goals. I can help you to calculate how much you may need to be able to realise your dreams and put together a series of manageable steps to help you achieve this.

With a trusted partner to help, you may be able to achieve the lifestyle you dream of sooner than you would have done if you’d waited to receive an inheritance.

If you do receive an inheritance or another type of financial windfall, I can provide guidance to help you make the most sensible decision about how to use it tax-efficiently. As a result, you could use the money you inherit to make further progress towards your goals.

As well as saving and investing, I can help you to protect your income and put contingency plans in place so that you could maintain your financial wellbeing, no matter what happens in the future.

Get in touch

To find out more about how I can help you to take control of your finances and start making meaningful progress towards your goals, please get in touch.

Email Marnel.Stafford@fosterdenovo.com or call 07305 970959 or 0207 469 2800 to start the conversation.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

When investing your capital is at risk.