Written by Karen Parker
According to various reports, we are on the cusp of the largest generational wealth transfer in history.
Research suggests that nearly two in three of 25 – 45-year olds expect to receive an inheritance from a family member, with almost a third of those expecting to receive over £50,000 as assets or cash.
The ever-increasing cost of living and stagnating wages means that many younger people are now relying on inheritance and substantial gifts in order to make ends meet.
It comes at a time when many young people have little financial stability of their own with almost half saying that they have less than £10,000 in savings.
A common issue is the lack of financial education given to young people leading to little understanding of personal finance and risk. As a result, those who do receive financial gifts are in great need of financial advice.
If you are planning on leaving your children with a nest egg, or even if you’re not, it is a good idea to have conversations about money as often as possible. While it can feel a little awkward at first, it opens the door to their understanding about investing in their future.
As well as the basics of saving and investing, home buying, pension provisions and making a will, it’s vitally important that people plan for the future using a big-picture view of what they want their life to look like. Those who are taking steps to save are likely to be doing so mindlessly without any real understanding of what they are trying to achieve and what it will take to get there.
If starting the conversation is difficult, it may be worth asking them to accompany you to a review meeting with your financial planner. As well as a review of your own situation, they can ask the planner any questions that they might have and also review their own financial plans.
Vintage will also be hosting a series of workshops covering basic financial planning for relatives of our clients. If you would like more information on these, please speak to your financial planner.
Categorised in: Vintage News
This post was written by Karen Parker