The amount of money left to loved ones in inheritance in the UK will jump to £1.1 trillion (€1.27 trillion) by 2047 from £194 billion in the current decade, research showed last Thursday.
As people live longer they will use up more of their wealth simply to fund the cost ofliving when they come to receive an inheritance
Based on predictions by those aged between 45 and 55, 4.5 million people will leave an average £238,000 in 2047, having enjoyed relative job security, seentheir homes shoot up in value and received inheritancesthemselves.
But HSBC’s Age of Inheritance in the UK report warned the £1.1 trillion figure will be slashed in half just 15 years later as future generations face a longer life span and higher living costs than the post-war baby boomers.
Based on current forecasts for 2015, the average inheritance is expected to be around £46,000, the report added.
In contrast, more than half of the 45 to 55 age group (53 per cent) believe they will pass their wealth down, typically leaving £237,911 when they die.
But HSBC also noted that as people live longer they will use up more of their wealth simply to fund the cost of living – as well as being older when they come to receive an inheritance.
The document, based on the expectations of 2,000 UK adults, predicts the windfall total will drop to £552 billion by 2062.
In the 35 to 44 age group, fewer than half (44 per cent) expect to leave an inheritance, dropping to an average of £186,572.
The same proportion of 25- to 34-year-olds plan leave a windfall – but the amount will fall further to £154,331.
More than eight in 10 people aged 35 and over expect to receive an inheritance from their parents.
But the younger generation are less hopeful, with six in 10people currently aged 34 and below believing they will receive something.
The report suggested falling expectations were down to the parents of the younger generation being the “squeezed middle”, supporting both their parents and children.
Of those who will receive a windfall, 34 per cent plan to spend it on essentials, while the same percentage would use the cash for a once-in-a-lifetime excursion.