Two thirds (68%) of UK adults believe it’s important they leave an inheritance, but mortgage and rental costs are hitting their hopes of handing down a legacy.

More than one in eight (13%) of those approaching retirement anticipate still having mortgage payments to make, compared to 4% of current retirees.

Additionally, 16% expect they will not own a property in retirement and will continue to pay rent, reflecting the changing economic conditions faced by different generations.

The results come from new research published by St James’s Place. It showed that despite their financial struggles, more than half (55%) of future retirees expect to provide financial support to other generations in their retirement, stretching their finances even further.

For one in 10 (9%) supporting other generations means they will have to reduce the amount they are able to pass on in inheritance.

Unsurprisingly, against this backdrop, confidence among future retirees in their ability to implement inheritance plans is also falling with 26% admitting they don’t feel confident they have the right plans in place compared to 14% of current retirees.

Overall, the next generation is a third less likely to pass down assets. While 65% of current retirees expect to pass down property to their family through inheritance, the figure falls to just 45% among those yet to retire.

Similarly, cash savings are planned to be passed on by 60% of current retirees, contrasting with only 40% of future retirees who share the same intention.

Claire Trott, divisional director for retirement and holistic planning at St James’s Place, said: “The next generation of retirees are grappling with unique economic circumstances compared to their parents and grandparents.

“Homeownership is increasingly challenging, leading many to anticipate paying off mortgages and renting well into retirement.

“Additionally, supporting others financially in retirement is becoming more common. Overall, this means that fewer people think they’ll be able to pass on wealth or other assets to loved ones in an inheritance.”

Research conducted for St. James’s Place by Opinium, among 4,000 UK adults between 27 February–8 March. All results are weighted to nationally representative criteria.