A new study by a price comparison platform suggests that many younger Britons are waiting to inherit before buying a home.
In a survey conducted by Forbes Advisor more than a third of respondents worry about the feasibility of saving up for a deposit for a house without any kind of inheritance. When breaking the results down by age, this increased to 50 per cent of those aged 34 to 54.
The data showed that one in five who were able to save for a mortgage deposit 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.
However, not everyone can look forward to this boost. The survey found that nearly six in 10 aren’t currently expecting any sort of inheritance, and close to one in six are unsure if they are due to receive anything.
Nearly a third of respondents are worried about hitting major financial milestones, such as a first mortgage, without external financial help such as an inheritance.
A spokesperson for the platform says: “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. Indeed, major milestones such as putting a deposit down on a house would forever be out of reach for a great number of people without this sort of bequest.
“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. This can be used to take care of debts and ongoing bills, and possibly to provide a cash sum for any purpose. With a whole life policy, which will pay out whenever you die, you can make detailed plans about passing on wealth to those you leave behind.”