The study underscores why advisors must help clients frame expectations about their ability to hit important life goals and manage events.

A study by Forbes Advisor, a financial guidance and price comparison platform, has found that UK adults are anxious about hitting major financial milestones in life without receiving some kind of inheritance.

For example, more than a third (35 per cent) of citizens worry about the feasibility of building up comfortable retirement savings without any kind of inheritance.

The study did not specify the wealth level of respondents to the survey. Even so, the finding may be a useful guide for wealth managers in understanding the motivations of their clients, and help to guide clients over their goals and ambitions. 

The data showed that 20 per cent of people who were able to save for their retirement were helped by some form of inheritance, such as a monetary gift from a family member or loved one, a payment from a family member's estate after their death, or a life insurance policy payout.

An inheritance of some kind can help people get closer to their financial goals, but not all can look forward to this boost. The survey found that one in six (14p per cent) are not sure whether they are due to receive anything.

However, some of those expecting an inheritance might not currently consider retirement savings their priority. When asked how they would spend an inheritance, over a third (36 per cent) of respondents plan to put it in a regular savings account, a fifth (21 per cent) would spend it on a holiday, while only one in 10 (10 per cent) say they will use it for a mortgage deposit.

Nearly a third (32 per cent) of survey respondents worry about hitting major financial milestones, such as a first mortgage, wedding, or their retirement, without external financial help such as an inheritance. 

In recent years, UK house prices, particularly in London and the southeast of the country, have risen sharply, fuelled by a lack of supply and strong central bank money printing, among other factors. The lack of affordable housing for younger adults has become a staple feature of political and media commentary. Student debt is another element of the problem. A common expression is how young adults rely on the “bank of Mum and Dad.”

Lack of confidence
Regardless of whether they are expecting an inheritance, 20 per cent of Brits are not confident that they will be able to leave anything behind for their own families when they die. Yet, despite this, only one in 8 (12 per cent) have a term life insurance policy in place, which could guarantee a stated cash payment in the case of premature death.

“It’s never comfortable to think about one’s own death or the death of a loved one, but the movement of wealth between generations in the form of inheritance is a key part of financial life for many of us. Not all of us have a pot of money to pass on, but this is where life insurance can help. With term insurance, you can arrange for a stated sum to be left to your loved ones in the event of your premature death within a certain timespan,” Kevin Pratt, life insurance expert at Forbes Advisor said.

“You can make detailed plans about passing on wealth to those you leave behind. It’s certainly worth giving life insurance some serious thought, as it is an effective way to deal with the anxieties and hopes of those who have dependents they want to look after financially,” Pratt added.