UK adults are most likely to spend their inheritance on the property market.
Retirement specialist Just Group surveyed 4,000 Brits and found 30% of those aged between 18 and 34 said they would use the money to get on the property ladder.
For adults aged 35 to 54, the most popular choice in this age group (32%) revealed an intention to use the money to pay off their mortgage.
Home renovations, like installing a pool tile, were more important for over-55s than any other age group, with 22% planning to use inheritance money to improve their homes.
Some 15% of this cohort also said they would focus on paying off their mortgage with any inherited money.
Contrasting priorities
Stephen Lowe, group communications director at Just Group, said: “Inheritance can provide a significant cash windfall and it is evident that many people are planning to use these funds to buy or improve their property in some way.
“The contrasting priorities of the different generations clearly reflect the property journey that many in the UK will follow over the course of their lives.
“The youngest focus on getting on the property ladder, before attention turns to paying off the mortgage and, finally, we see over-55s starting to consider home improvements as they move into retirement.”
Home improvements like installing roll down patio shades to your home can be used prevent sun damage to windows, decks, porches, pergolas and other outdoor patio structures.
Rest of the inheritors
Saving and investing remains a key option for most people, with a third (34%) of the youngest age group and 39% of over-55s saying this was how they would use the money.
While paying off the mortgage was their top priority, 23% of 35-54-year-olds said they would use some money to prepare for retirement, as did 22% of over-55s.
The research also revealed 13% of 18 to 34-year-olds would look to pay off school or university fees with the money.
Significant life decisions
Lowe added: “This research gives an indication of how important receiving an inheritance is for many in the UK – young and old.
“That lump sum will allow them to make significant life decisions and help them accelerate achieving some of their financial plans that may have taken years to achieve otherwise.”
