Millions rely on inheritance money to fund retirement, but few have any idea how much they'll receive

The study has found that more than one in three people (37%) say they are financially dependent on receiving an inheritance. Yet three in five (60%) admit they have no idea how much money they are likely to receive.

This raises concerns that many households could be making important financial decisions based on assumptions, particularly where inheritance is expected to help pay for everyday living costs, clear debts and fund their own retirement.

Demographic and societal changes mean that younger generations face rising housing costs, higher savings challenges and increasing pressure on household finances. As wealth passes between generations, inheritance is becoming a more important part of many peoples’ financial plans and is increasingly becoming an expectation.

Three out of five (60%) people who expect an inheritance don’t know how much money they will receive. However, 43% of those say an inheritance from their parents would form an essential part of their financial security and more than a third (37%) say they are financially dependent on receiving it.  

Most plan to use any inheritance money to fund day-to-day expenses (35%), while just under a third (32%) say it will be necessary for funding their own retirement. Just under three in ten (29%) plan to pay off debts, and a similar number (27%) will pay off their own mortgages with the money, or fund a house move (24%).  One in five will use any inheritance for their own or their children’s education.

Some of the important building blocks of estate and inheritance planning are largely missing, with less than 20% planning to discuss inheritance with their children; only around a third (32%) of people have an up-to-date will and know where it is. 7% say their will is up-to-date but don’t know where it is, and one in ten (10%) say their will is out of date.

There are also significant gaps in planning for later life, with only 13% of adults having a Power of Attorney in place. Even among older generations, uptake remains relatively low, with just 17% of those aged 65-74 and 33% of over-75s having prepared one.

Lorna Whalley, Director of Aviva’s Adviser Platform, believes these findings demonstrate the importance of getting later life planning in order, saying: “The research shows that there is an absence of family discussions around inheritance and expectations which could have repercussions, especially when considering how much potential beneficiaries are relying on inherited money to fund their day-to-day expenses.

“Even though situations can change, it’s important for people to consider the levels of income they will need in retirement, what contingencies need to be in place and, as a result, be clearer with beneficiaries about what they can expect to receive.  More than half of people (53%) say they don’t know how much money they will need to support themselves through retirement. Understanding this is an important step in avoiding being too generous by helping family out to the detriment of their own financial security, or alternatively, thinking they might need more money for retirement than they do. A clear understanding of your financial situation and future needs is the building block for open conversations about inheritance and expectations.

“People are relying on inherited wealth to fund essential parts of their lives, but many have no idea how much they are likely to receive. This uncertainty could prove disastrous for future financial plans and makes it much harder to take steps now to meet future requirements. Even if these conversations feel awkward, people could consider using neutral third parties, such as a trusted financial adviser, to facilitate family conversations, to help ensure expectations are better understood.”

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Sources

The research was conducted by Censuswide with a sample of 2,000 nationally representative consumers aged over 18. The data was collected between 23.01.26 – 27.01.26. Censuswide is a member of the Market Research Society (MRS) and the British Polling Council (BPC), and a signatory of the Global Data Quality Pledge. Censuswide adhere to the MRS Code of Conduct and ESOMAR principles.

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