Planning for family, legacy and longer lives
We are living longer. That can mean more time with the people we care about, but it can also change how we think about supporting family, planning for retirement and deciding what we want to leave behind.
Our latest Life100+ research explores how longer lives are reshaping family finances. It looks at the choices people make about gifting, inheritance, retirement, care and the conversations that can help families plan with greater confidence.
Passing money on to family is something many people expect to do. Eight in 10 people expect to pass on wealth, either through an inheritance or by gifting during their lifetime.
But timing matters. Support may make the greatest difference when someone is buying a first home, raising children, paying for education or managing day-to-day costs.
The research found that the main reason people choose to give money during their lifetime is to make a positive difference to family members’ lives now, rather than later.
| Why people give money during their lifetime | Percentage |
|---|---|
| To have a positive impact on family members’ lives now | 50% |
| To experience the joy of giving | 37% |
| To support family with major expenses | 34% |
| To help with day-to-day living costs | 33% |
What this means for you: giving can be meaningful, but it is not right for everyone. The decision needs to work for the person giving the money as well as the person receiving it.
Many people want to help family but longer lives can make financial decisions more difficult.
You may be thinking about giving money to children or grandchildren, while also considering how this could affect the money you may need for your own retirement, health or care needs.
Some people are also supporting more than one generation at the same time. They may be helping adult children, caring for older parents or planning their own retirement, whilst trying to make sure everyone is supported.
What this means for you: supporting your family does not have to be an all-or-nothing decision. You may decide to offer smaller amounts over time, make a one-off gift or leave an inheritance later. The important thing is to make a plan that protects your own financial security.
There is no single right approach.
Giving during your lifetime may allow you to see the difference your support makes. It may help your family at a time when money could have the greatest impact.
Leaving an inheritance can mean you retain access to your money during retirement and have more flexibility if your circumstances change.
Some families may choose a combination of both, offering support where they can whilst keeping longer-term plans under review.
Before making a gift, it can be helpful to think about:
Support between generations can take many forms. It may mean financial help, childcare, practical support, care or simply spending time together.
Our research found that people who had already given, or expected to receive, money from a living relative reported higher life satisfaction. This shows an association rather than proof that giving or receiving money causes greater satisfaction, but it highlights the potential value of family support when it is planned in a way that works for everyone.
What this means for you: family support is not only about money. Clear conversations, practical help and shared plans can all make a difference.
Money, inheritance and future wishes can be difficult subjects to discuss. Many families avoid the conversation because they do not want to cause concern or create awkwardness.
However, talking early can help reduce uncertainty and make future decisions easier.
A conversation does not need to cover everything at once. You could begin by discussing:
Clear conversations can help families understand one another’s expectations and make plans that work for everyone.
Inheritance tax can be an important consideration, but legacy planning is about more than reducing tax.
It can include:
Taking time to consider these areas can help you feel more in control and reduce uncertainty for the people close to you.
Gifting, inheritance and estate planning can involve difficult choices.
A financial adviser may be able to help you consider:
What this means for you: you do not need to have every answer before you start. A useful first step may be to review your plans, talk to your family or seek advice where you need more support.
Planning for family, legacy and longer lives is not about having everything decided today. It is about understanding your options and taking the next step that feels right for you.
You may want to:
The global demographic shift is well underway, and our Life100+ research aims to explore how we can best approach and prepare for the longer years, ensuring that we’re set to make the most of our improved longevity.
In this report, we focus on the workplace as we explore the attitudes of employees and employers, and what needs to
be considered to build multigenerational workplaces fit for the future.
Explore the areas that can help you support your family, plan ahead with confidence and understand what may happen in the future.
Financial advice is not only for people with significant wealth or those ready to make a large gift. An adviser can help you understand your options, consider the needs of the wider family, and create a plan that can adapt as circumstances change.
I am thinking about helping family now
You may be considering a house deposit, childcare, education or day-to-day financial support.
I want to understand what I could leave behind
Explore inheritance tax, gifting, trusts and the choices that may affect your family’s future.
I want to make my wishes clear
Find out how a Will, lasting power of attorney and clear family conversations can help you plan ahead.
I am dealing with an estate
Understand probate, executor responsibilities and the practical steps that may be needed after someone dies.
Not sure where to begin?
Answer a few simple questions to find the most relevant Life100+ guidance, tools and support.
This information is intended as a general guide only and is not personal financial, legal or tax advice. Consider taking appropriate financial, legal or tax advice before making decisions about retirement, savings, investments, gifting, inheritance, estate planning or family support.
