UK millennials’ wealth is expected to reach £1.2trn over the next 30 years according to research by Sanlam.
Over 11m people aged between 25-45 in the UK expect to receive some sort of inheritance from their parents or grandparents.
Nearly half (5.1m) of this group expect to inherit at least £50,000 in fixed assets or money said financial services group, Sanlam.
The report, The Generation Game, comprises research of three different cohorts: over-55s with investable assets of £100,000 who are leaving their children and grandchildren inheritance; people aged between 25-45 who are expecting to receive at least £50,000 in inheritance; and 200 UK-based independent financial advisers.
The report said those 5.1 million likely to receive over £50k, the mean average value of the inheritance expected is £233,000, which would equate to £1.2trn.
However, the report also suggests that (38%) of those set to receive this inheritance have not yet spoken to the gifting party about their plan.
Despite the vast amount of wealth likely to be passed down between generations, the report nonetheless warned that those in line for inheritance could end up being over-reliant on their expected windfall.
Almost a third (31%) of those 25-45 year olds surveyed for the report admitted they are putting off saving and “living in the now” because they know they have the money coming later down the line.
Four out of five (81%) beneficiaries of inheritance expect to receive money, while just over half (51%) assume they will receive fixed assets of some kind.
Sanlam UK CEO, Jonathan Polin commented: “Clearly, the recipients of this wealth – many of whom straddle the line between millennials and generations Xers – are relying on their inheritance to act as a financial panacea.”
The research was undertaken for Sanlam UK in April 2018.