Over half of baby boomers want to pass on wealth to their children, even if this creates financial problems for them in retirement.
This research, conducted by Aegon, found 54 per cent of this generation said passing on wealth was important, however for a fifth of respondents said this could hold them back from spending in retirement.
These findings comes as the youngest baby-boomers turn 55 in 2019, the age which they can access their pension.
For many of this age, spending on family is already high. This Aegon research found that of a quarter of respondents said family is already a significant expenditure.
Aegon pensions director Steven Cameron says: “With baby boomers now all reaching the age they can access their pension, many will begin to think about inheritance planning and the desire to pass on wealth to loved ones.
“Transferring wealth is an ambition for many individuals and the introduction of the pension freedoms in 2015 has increased the options for doing this.
“For some retirees looking to pass on wealth, however, the desire to help family members may come at a cost.”
He added: “It’s good that there are now more options for transferring wealth to the next generations. But whether it’s passing on remaining defined contribution pension funds on death or granting financial gifts earlier to help children on to the housing ladder, there are complex considerations including around tax.
“The options available and the tax implications will depend on your personal and financial circumstances so it is best to seek financial advice. This may show a degree of caution is needed to ensure savings do not run out in retirement.”
