Inheritance is a potentially thorny topic, but it's important to discuss your retirement plans and your inheritance with your children, grandchildren, and next of kin.
While three quarters of children are happy with their parents spending their savings in retirement, four fifths of parents are determined to leave an inheritance.
In other words, the balance among retirees is tipped firmly in favour of leaving their children a financially-secure future. Furthermore, half of retirees are so eager to obtain this outcome that they will forgo frivolous spending during retirement.
Sadly, many retirees are saddled with homes that they cannot sell, with energy, maintenance, and mortgage costs that leech them of their savings, and with excess space that their lower mobility leaves them no use for. One third of retirees do not think they will be able to leave behind a substantial inheritance, whereas only one quarter actively plan on spending their savings rather than bequeathing an inheritance.
In other words, there is a portion of retirees who do not actively desire to spend all of their savings on furnishing an enjoyable retirement for themselves, and yet they cannot afford to leave behind an inheritance for their children and next of kin.
Retirement does not have to be an ‘either/or’ dilemma where an inheritance is either left or it is not. Couples should not feel guilty about having a greater disposable income to improve their retirement plans, nor should they abstain from spending altogether in the hopes of securing the future of their offspring.
Where we come in
A Leisure Parks UK Park Home can provide you with the happy medium of an enjoyable retirement and a sizeable inheritance to leave behind. We offer single-story living arrangements that generously accommodate the lower mobility that comes with age. Our safe, close-knit communities will ensure that you have company, cooperation, and warmth. Most importantly, the reduced maintenance and energy consumption costs mean that you can enjoy a pleasant and companionable retirement in an economical way.
Our Home Exchange Scheme promises you, at the very least, the market-value price of your UK home along with one of our Park Homes in exchange. We cover the legal costs, the service is fast and efficient, and there are no hidden costs such as estate agency fees.
How will you spend your money?
Meanwhile, should you choose to embrace alternative arrangements, Leisure Parks UK is there to empower you. By selling your home and freeing up equity, you can boost your disposable income to provide the best of both worlds by leaving an inheritance and experience the things you have always wanted to. Research shows that purchasing experiences rather than material things can generate more happiness over the long term.
With the reduced costs that come with living in a Leisure Parks UK Park Home, you could explore the verdant ruins of Machu Picchu, visit the Great Pyramid of Giza, or see any of the sights you have yet to strike off your bucket list.
Become a living trustee of your inheritance
If you still desire to benefit your friends and offspring financially, you do not have to do so in a single lump sum bequeathed after death. Instead, why not become a living trustee of their inheritance, using your wisdom wrung from experience to decide when and how to invest in their future?
You can lend your children money for wedding deposits, or contribute to tuition fees for your grandchildren; in each case, you will be there to see the visible results of your generosity, rather than having to trust that your inheritance will be well-disposed of after your passing.
How to alleviate the mortgage burden
If you are still years away from paying off your mortgage, it can put a strain upon your pension. The years that should be set aside for ease and relaxation become, instead, a penny-pinching slog. Downsizing will release more equity, thereby assisting you financially, allowing you to enjoy the full benefit of your pension.
Going for strolls or walking beloved pets can become more of a chore than a pastime as we get older. For those who live in or near cities, parks and nature reserves are in short supply, and the cost and exertion of travel can often outweigh the enjoyment.
Leisure Parks UK offers you proximity to areas of natural beauty, along with more compact, upkeep-friendly gardens to explore.
Why discussing your plans is so important
There are many options available to you, and in spite of the statistics, your decision to leave an inheritance is yours – and yours alone.
Discussing your plans with relatives is vital because you need to know, first of all, whether your children and dependants actually want or need an inheritance. Loved ones might feel guilty and surprised about a sudden decision to downsize. Prior discussion and consultation can clear the road to retirement of any emotional potholes.
With the welter of options available to you, it helps to have relatives standing by – who by their nature have your best interests at heart – to help you sift through the pros and cons, and form an accurate judgement of what suits you best.
So use your time, along with the advice of friends, loved ones, and professionals, to come to a reasoned and considered conclusion on how to dispose of your savings effectively.
Looking to release funds for your retirement? Download our guide on releasing funds for retirement now...
Disclaimer: this article is general information only and does not constitute financial, legal, medical or other form of professional advice. You should not base any decisions solely on this information. Always obtain independent, professional advice, from multiple sources, for your own particular situation.