A new report from Moneybox warns that around 10 million Britons could face a retirement funding gap of nearly two years after discovering an inheritance they were counting on may not materialise. The study reveals that fewer than half of survey respondents (46%) have discussed inheritance plans with their loved ones, yet one in five UK adults (20%) – roughly 10 million people – expect to use an inheritance to help fund their retirement.
Average inheritance expectation of £56,535
Those expecting an inheritance anticipate receiving an average sum of £56,535. However, with a 'moderate' retirement requiring £32,700 a year for a single person, losing out on this assumed inheritance represents a shortfall of nearly two full years of comfortable retirement income. Moneybox said this gap in assumptions could leave retirement plans “in tatters”.
Discomfort around inheritance discussions
The research highlights widespread discomfort around the topic. One in seven (15%) find it awkward to discuss inheritance, one in 10 (12%) feel it would be rude to bring up the topic, and 8% avoid the conversation entirely because they worry it might lead to family arguments. More than one-third (36%) of adults believe that inheritance should not be relied upon when planning for retirement.
Expert advice: plan with what you can control
Brian Byrnes, director of personal finance at Moneybox, 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.” He added: “Getting ahead and planning for your retirement should always be the first step, and this includes having open and honest communication with your family.”
Byrnes noted that social care costs are also rising, meaning an estate that looks substantial today could look very different in 10 or 20 years. He emphasised that retirement planning is strongest when built around savings and investments you can control, rather than depending on money that may come in the future. “It's understandable that conversations about inheritance can feel uncomfortable, but where families are able to have open discussions, it can help manage expectations and give everyone greater confidence when planning for the future,” he said.
