Millennials expect to inherit £1.2 trillion over the next 30 years, a new survey has predicted.

More than 11m people aged 25-45 in the UK expect to receive some sort of inheritance from their parents or grandparents, with nearly half (5.1 million) of these expecting to inherit at least £50,000 in fixed assets or money.

That is according to a new report by wealth manager and Financial Planning firm Sanlam UK that looked at the intergenerational wealth transfer expected to take place in the UK over the next 30 years.
 
The report, ‘The Generation Game’, comprised research of three different cohorts: over-55s with investable assets of £100,000 who are leaving their children and grandchildren inheritance; people aged between 25-45 who are expecting to receive at least £50,000 in inheritance; and 200 UK-based IFAs.

The report found that, of those 5.1 million likely to receive over £50,000, the mean average value of the inheritance expected was £233,000, which would equate to £1.2 trillion for the whole population.

But the report also suggested that four in 10 (38%) of those set to receive this inheritance had not yet spoken to the would-be gifting party about their plans – suggesting a potential mismatch between expectations and reality.
 
Sanlam UK chief executive Jonathan Polin said: “Our report highlights the scale of intergenerational wealth transfer that the UK is set to see over the next few decades.

“This level of inheritance is unprecedented, and its transfer presents both opportunities and challenges for the financial services industry and society more generally.

“That it comes at a time of societal, political and economic upheaval simply adds another element of complexity and uncertainty to an already extraordinary picture.”
 
Despite the vast amount of wealth likely to be passed down between generations, the report warns that those in line for inheritance could end up being over-reliant on their expected windfall.

Almost a third (31%) of those 25-45 year olds surveyed for the report admitted they were putting off saving and “living in the now” because they knew they had money coming later down the line.

A similar number (34%) said they would be reliant on their inheritance to help with their finances in the future.