Early planning beats wishful thinking when it comes to your future

It states that almost half of millennials do not have a retirement plan in place, with more than 60% worrying they may need to return to work after retiring.  Furthermore, it highlights that 12% of those aged 28-44 have no savings at all set aside for later life, and over a third are unsure of how much they are contributing to their pension.  This evidence suggests that the millennial generation is significantly less attuned to the need to save and plan financially for later life than their parents and grandparents.

This article highlights why younger generations may need to plan carefully and not overly rely on the hope of a family inheritance. By taking steps today, millennials, and indeed their parents, can provide them with more financial confidence and stability, topics we explore in Generation wealth, generation responsibility, and Introducing younger family members to estate planning, both featured in our “Preparing the next generation for wealth“ focus.

The reason for the note of caution being sounded about relying on a future inheritance to fund millennial retirement is that the article reports that the majority of baby boomers (broadly those born between 1946 and 1964) appear to take the view that providing an inheritance for family members is less of a priority.  The article reports that only one in five regards leaving an inheritance as a top priority for retirement.  Instead, their focus is on quality of life in retirement, from travel and hobbies to spending time with family and friends (indeed, this may also be partly triggered by concerns about funding future care fees).

That said, a significant minority of baby boomers expressed a desire to provide a ‘living inheritance’, helping their children or grandchildren financially during their lifetime rather than waiting to pass on wealth after they have passed away. This may be because they recognise that helping family members at a younger age (perhaps when buying their first house) can be more valuable than doing so later in life, when they may already be generating substantial wealth on their own.  It may also be attractive to make lifetime gifts, allowing the donor to see their gift in action and help the recipient’s family members while they are alive.

These findings highlight an important intergenerational gap: while younger people are deferring retirement planning, older generations are not necessarily prioritising inheritance. This creates a potential financial pinch point for millennials, who may be relying on a windfall that may never materialise.

How our Private Wealth team can help

At Greenwoods, our Private Wealth team understands the challenges faced by younger generations. Rising living costs, later property ownership, and longer life expectancies all make early planning increasingly important. Our team works with clients to:

• Build retirement plans that suit individual circumstances.
• Offer advice on tax-efficient ways to save and grow wealth.
• Structure gifts and “living inheritances” to support the next generation while safeguarding the donor’s financial security.
• Ensure long-term protection through wills, trusts, and lasting powers of attorney.

Starting early allows millennials to take control of their financial future rather than relying on uncertain inheritances or risking an underfunded retirement.

Preparing the next generation for wealth is about making thoughtful decisions today. With the right advice and structures in place, you can help secure financial confidence for your future and that of your family.

Our Private Wealth team is here to help. If you would like to have a conversation about preparing your wealth for the next generation, we would be delighted to speak with you.