A third of millennials are concerned that their parents are going to “fritter away” their inheritance, new research reveals.
New research from digital wealth manager Moneyfarm found that 30 percent of the adults in their 30s and 40s surveyed felt that their inheritance was at risk because of their parents spending habits.
The survey, which polled 1,000 people between 35-50 and 1,000 aged 65 and over, found that a staggering 41 percent of millennials described their parents as “spendthrifts” that spend money all the time.
Of those surveyed almost a fifth (19 percent) believe that their parents’ spending habits are selfish, insisting they aren’t thinking enough about their children’s or grandchildren’s financial futures.
These contrasting views inevitably lead to tension with 17 percent admitting to having full blown arguments with their parents about the money they are hoping to inherit.
The poll also revealed 21 percent “see red” when their parents splash out on expensive items and essentially spend ‘their’ money, with a third (35 percent) admitting that if their parents splurge on multiple holidays a year it would make their blood boil.
As a result, 70 percent of 35 to 50-year-olds say they are regularly putting money away in case their parents’ inheritance doesn’t match up to expectations.
Conversely, four in ten 40 say they are not going to extra lengths just to build up an inheritance for their children.
Chris Rudden, head of investment consultants at Moneyfarm, said: “In a world where the price of assets; mainly house prices and the global stock markets, have increased far more than wages over the last 20 years, younger generations are now generally poorer than their parents’ generation.
“This combined with the fact that wages have also struggled to keep pace with inflation in recent years, means that 35 to 50 year olds are likely to be far more reliant on a future inheritance than previous generations.
“If millennials are to financially succeed in the long-term it is crucial they plan for their future in case they may not be inheriting as much as they are expecting.
“Equally, if it is the desire of the older generation to leave an inheritance, they need to plan carefully in order to leave anything meaningful.”
