Retirees relying on inheritance

Nearly 40 per cent of people told Fidelity International that rather than save they are hoping for windfall payments to enjoy a debt-free and comfortable retirement.

However, Simon Fraser, president of institutional business at Fidelity International, warned against a lack of planning: “A good retirement plan should rest on solid foundations, not unpredictable windfalls.

“If the individual relies on an inheritance which does not transpire, they will have missed out on precious time. Complacency and trusting to chance is an option that people – especially young people – simply cannot afford.”

According to the research, reliance on inheritance was highest amongst the under-35s but even in the 35 to 54 age group a third are relying on such a windfall to clear debts.

Yet Mr Fraser said that the “message was clear” that windfalls do not always happen and that people should make financial plans to avoid a retirement full of debt.