- Canada Life is looking to encourage people to break the inheritance taboo
- 56% of UK adults who received an inheritance in the past five years did not discuss the value of it with the benefactor beforehand
- A third (33%) plan to put the money they inherited into a savings account
Discussing money during life is uncomfortable for many but inheritance it seems is an even greater taboo. New research from Canada Life finds that the majority of UK adults (56%) who received an inheritance sum over the past five years did not discuss its value with the benefactor beforehand.
Nearly a fifth (17%) of UK adults have received an inheritance within the last five years, at an average value of £35,000. Yet for over half of those (56%) - the equivalent of 5.1 million people - this sum came as a surprise.
Only 12% of those who have received an inheritance sum knew the exact amount they would receive. Nearly a third (31%) said they received more than they were expecting, and 26% received less.
When it comes to spending, or planning to spend the money inherited, a third (33%) said they have or will put it into a savings account. Other top responses include:
- Invest for the future - 19%
- Pay off debts - 15%
- Renovate a property - 14%
- Travel - 12%
- Gift the money to children or grandchildren - 12%
Stacey Love, tax and estate planning specialist at Canada Life, comments: “It's understandable that many people shy away from talking about inheritance. However, not having these important conversations means that those who are receiving can be caught by surprise when the time does come.
“We would encourage everyone to break the taboo and have open conversations with your loved ones about your financial circumstances and inheritance plans. Being open about your wishes and discussing any potential unexpected costs that may arise in the coming years, such as care costs, allows you and your family to take control and make necessary financial arrangements now that will help to ensure that you’re in good stead for the future.
-ENDS-
Notes to editors
- Survey conducted by Opinium among a nat rep sample of 2000 UK adults between 9-13 February 2024
Enquiries:
Press enquiries should be directed to:
Lizzie Murray, Vested, 07914 698 310, canadalife@fullyvested.com
Elle McAtamney, Canada Life, 07913 568213, elle.mcatamney@canadalife.co.uk
About Canada Life
Canada Life is part of a group of companies controlled by Great-West Lifeco Inc., a diversified financial services holding company headquartered in Winnipeg, Canada. Through its subsidiary companies, Great-West Lifeco has operations in Canada, the United States, and Europe. Great-West Lifeco and its insurance subsidiaries have received strong ratings from major rating agencies. Great-West Lifeco has over 38 million customers worldwide and £1.532trillion assets under administration (as at 31 December 2022).
Canada Life Limited began operations in the United Kingdom in 1903 and looks after the retirement, investment and protection needs of individuals and companies alike. As well as providing stability and security through its individual contracts, Canada Life Limited has grown and maintained its position as the market leading provider of group insurance solutions.1 Canada Life acquired Retirement Advantage on 3rd January 2018 for an undisclosed sum. The acquisition added over 30,000 retirement income and equity release customers and more than £2 billion of assets under management including a £1.5 billion block of in-force annuities to Canada Life.
Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority. Canada Life International Assurance Limited and Canada Life International Assurance (Ireland) DAC are authorised and regulated by the Central Bank of Ireland.
Stonehaven UK Limited, registered in England and Wales no. 05487702. Registered office: Canada Life Place, Potters Bar, Hertfordshire EN6 5BA.
Stonehaven UK Limited is authorised and regulated by the Financial Conduct Authority.
- Canada Life MI & Swiss Re, 2022