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Prudential research finds many 2011 retirees unable to leave inheritance


According to new research from Prudential, only half of those retiring this year will be able to afford to leave an inheritance. Just 52% of those questioned are confident they have enough income and assets to fund their retirement and still be able to leave money to relatives and dependents.

Prudential’s Class of 2011 research questioned people planning to retire this year and found that 26% have already ruled out being able to leave any inheritance while another 22% were unsure whether their personal savings would be sufficient to fund their retirement. The results also show that 9% of those planning to retire this year will cancel their inheritance planning in order to boost their own retirement income.

Gerry Brown, a tax and trusts expert from Prudential said: "Obviously the focus for retired people has to be on their own retirement income and so leaving a financial legacy can become a secondary consideration. Our research shows that inheritances are increasingly in the ’nice to do’ rather than the ’need to do’ box because of uncertainty around being able to afford a comfortable retirement.

"For those who do hope to leave a financial legacy there is a risk of assets that increase in value being left exposed to tax as the threshold for inheritance tax is frozen until 2015.

“It is therefore imperative for people looking to leave an inheritance and secure a comfortable retirement income to seek professional financial advice in the run up to retirement and to save as much as possible, as early as possible.”

Men are more confident of leaving a financial legacy - the research results show that 56% of male retirees plan to leave an inheritance compared with 48% of women.

The Class of 2011 research has previously found that this year’s average expected retirement income is £16,600 with just 39% confident they have saved enough for a comfortable retirement.

Across the UK those planning to retire in Scotland this year are the most positive about their ability to leave an inheritance - 67% of them believe they will be able to leave a financial legacy for their families, compared with only 43% of retirees in Wales.

The information contained in Prudential UK’s press releases is intended solely for journalists and should not be used by consumers to make financial decisions. Full consumer product information can be found at

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Notes to editors:
*Survey conducted by Research Plus between 6 and 14 December 2010 using an online methodology among 10,143 UK non-retired adults aged 45+ including 1,005 planning to retire in 2011.

About Prudential:
’Prudential’ is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. This name is also used by other companies within the Prudential Group, which between them provide a range of financial products including annuities, life assurance, bond investment, pension funds, a tax calculator and retirement plans.

Prudential offers customers pensions and annuities, pensions retirement income, insurance and investment opportunities.

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020 7150 3017


 inheritance planning
 planning to retire
 retirement income
 personal savings
 inheritance tax

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