Approximately 10 million adults across Britain are banking on inherited money to support their retirement years, according to new research published today by Moneybox.
The Psychology of Retirement study has uncovered what researchers describe as an “inheritance assumption gap” affecting one in five UK adults.
Those counting on receiving money from relatives anticipate an average sum of £56,535.
However, the research reveals a troubling disconnect: despite factoring inheritance into their retirement strategies, many individuals have little idea what they might actually receive, or whether they will inherit anything at all.
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Among those who expect to inherit, under half have actually raised the subject with family members, leaving them uncertain about what sum might materialise.
The study found that 22 per cent have never discussed the matter with relatives yet still assume money will come their way.
This figure climbs significantly among those aged 35 to 54, with a third of this group admitting they have made no attempt to broach the topic despite building their retirement expectations around it.
To contextualise the potential shortfall, a moderate retirement lifestyle requires £32,700 annually for a single person, meaning the anticipated inheritance represents nearly two years of comfortable retirement funding.
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The research also sheds light on why these financial discussions remain so difficult for British families. More than a third of adults surveyed believe inheritance should never form part of retirement planning at all.
One in seven respondents described such conversations as awkward, while 12 per cent considered it impolite to raise the subject with relatives.
A further eight per cent steer clear of the topic entirely out of concern it might spark disagreements within the family.
Brian Byrnes, the director of Personal Finance at Moneybox, warned that quietly incorporating expected inheritances into retirement strategies carries significant dangers.
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GETTYHe said: “Our research reveals millions could be facing an inheritance assumption gap. Quietly factoring future inheritance into retirement plans is not only risky, but potentially devastating if fully relied upon.”
Mr Byrnes emphasised that estates appearing substantial today could diminish considerably over the coming decades, particularly as social care costs continue to rise.
He urged families to pursue open dialogue where possible, noting that retirement planning works best when centred on savings and investments individuals can directly control rather than uncertain future windfalls.