Brits ‘awaiting inheritance to clear debts’

Millions of people around the country are awaiting an inheritance windfall that they hope will help them become debt free, it has emerged.

Research by Engage Mutual Assurance has found that a quarter of British consumers are planning to use inheritance cash to pay off their mortgage.

But the financial services firm has warned that these hopes could be unrealistic because millions of pensioners are themselves facing debt management problems and are unlikely to leave sizable sums to their children.

Indeed, the company reports that a majority of retirees are finding it difficult to keep up with their own outgoings and almost 8,000 pensioners declared bankruptcy over the course of last year.

Karl Elliott, 3GB spokesperson for Engage Mutual, commented: “It is worrying that so many people have to depend on inheritance to be able to pay for these things.”

In related news, a report from the KidStart saving scheme recently suggested that British grandparents are increasingly dipping into their own funds to financially help younger generations of their families.

Written by Giles Stevenson