Only ten per cent of Europeans reckon they are intending to pass on “significant wealth” to their kids says a consumer finances survey by Janus Capital Group.
Of the 6,010 Europeans questioned, a further 42% said they wouldn’t be leaving anything behind and the other 48% said they didn’t know what they’d do.
The survey questioned adults from the UK, Spain, France, Italy, Germany and Holland and showed the current financial situation has “fundamentally challenged the norms of financial wellbeing”, according to head of Janus Capital’s European business Ric Van Weelden who said: “Specifically, the report highlights how few Europeans are likely to have made adequate provision for their retirement, let alone passing on wealth to the next generation. The financial services industry will have a very different landscape to serve going forward.’
According to the report, currently in the UK the average estate is worth £90,000 and divvied five ways. However, Janus Capital said this will more than likely change because those in the 45-54 age bracket won’t be able to save sufficiently, or won’t want to.
This altering mind set could well lead to a change in attitude to equity release; a way of supplementing retirement income by using the value built up in a property. Where in the past homeowners were concerned about leaving an inheritance, the outlook has now switched and what’s more important is leading a comfortable life. This can be done by taking out a regulated lifetime mortgage or home reversion plan after taking advice from an independent specialist equity release adviser.
Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration.
Bower is an FCA regulated independent financial advice company that offers specialist advice on equity release throughout the UK. For more information email [email protected] or call 0800 4118668. Bower offers a no obligation initial consultation to homeowners considering equity release.