People born between 1997 and 2012 have been issued an £80 alert ahead of new inheritance tax rules and IHT changes from April 2027. Nearly one in four Gen Z adults say they are not focusing on saving for retirement because they expect to inherit money or property from their family.
Research by retirement specialist Standard Life found that one in seven parents (15%) now plan to prioritise enjoying their money during retirement rather than preserving it to pass on to their children. The study found that 23% of Gen Z respondents are relying on inheritance as part of their retirement plans. Among millennials, born between 1981 and 1996, the figure was also high at 20%.
HMRC Changes from April 2027
From April 2027, under HMRC rules, most unused pension funds and pension death benefits will be brought into the value of an estate for inheritance tax purposes. As a result, almost three in 10 parents (29%) said the changes would influence how they use their pension savings.
Expert Warning
Mike Ambery, retirement savings director at Standard Life, said: "Inheritance can play an important role in family finances, but it is risky for younger people to build their retirement plans around money or property they may never receive."
The warning from Ambery went on to add: "At a time when many are dealing with higher living costs and financial pressures, it's understandable that some may look to inheritance as part of the picture - but it's far from guaranteed."
"With people living longer and later-life costs rising, many parents may understandably want or need to use more of their savings during retirement."
The expert continued, telling Gen Zers across the country: "With this in mind, inheritance should be seen as a possible bonus, rather than a substitute for building your own retirement pot."
