UK inheritance to peak by 2047

A new report by HSBC reveals around £1.1 trillion will be left to beneficiaries by 2047, the peak of leaving an inheritance

Inheriting wealth is set to peak at £1.1 trillion by 2047, HSBC's “Age of Inheritance” reports shows but windfalls thereafter are expected to fall dramatically.

Inheritance levels are expected to reduce to £552 billion by 2062. This compares to inheritance in 2015, which is estimated to be £194 billion. Those aged 55 and over have, so far, received the biggest amount of inheritance and are also expected to leave the most.

However the report said the increasing longevity of the average Briton's life and the associated delay in leaving an inheritance is having a two-fold effect on reducing windfalls for future generations.

The rising cost of living is also expected to erode the value of inheritance. David Wells, Head of investments, pensions and savings at HSBC said, "The findings of this report serve to highlight the importance of financial planning, both for those who plan to bequeath an inheritance and for those who are likely to be in receipt of one."

"Wealth needs to be carefully managed so that the value is not eroded before it can be passed down to future generations. Many of us will be reliant on an inheritance to achieve the lifestyle our parents have enjoyed."