UK citizens born between 1997 and 2012 alerted to April 2027 change

UK citizens born between 1997 and 2012 alerted to April 2027 change A warning has been issued to younger Brits Young people are being cautioned against relying on a future inheritance following new research findings. Almost one in four Gen Z adults – those born between 1997 and 2012 – confess they aren't prioritising retirement savings because they anticipate receiving money or property from their family. However, the anticipated windfall might never come to fruition. Research conducted by retirement specialist Standard Life revealed that one in seven parents (15%) now intend to prioritise enjoying their money during retirement instead of preserving it to hand down to their children. The results highlight a widening divide between the expectations of younger generations grappling with housing costs and living expenses, and parents who are increasingly intent on spending their hard-earned savings themselves. The study discovered that 23% of Gen Z respondents are counting on inheritance as part of their retirement strategy. Among millennials, born between 1981 and 1996, the proportion was also significant at 20%. Yet many parents seem to have different plans. One in seven stated they planned to focus on "living for today" rather than leaving money behind, while upcoming inheritance tax reforms are also reshaping retirement planning. From April 2027, most unused pension funds and pension death benefits will be included in the value of an estate for inheritance tax purposes. Consequently, nearly three in 10 parents (29%) indicated the changes would affect how they utilise their pension savings. Approximately one in 10 (10%) indicated they would be more inclined to spend their pension savings during retirement rather than leave them untouched, while 22% said they would be more likely to give away money during their lifetime. Mike Ambery, retirement savings director at Standard Life, cautioned younger generations against relying on inheritance as a retirement strategy. He said: "Inheritance can play an important role in family finances, but it is risky for younger people to build their retirement plans around money or property they may never receive. "At a time when many are dealing with higher living costs and financial pressures, it's understandable that some may look to inheritance as part of the picture - but it's far from guaranteed. "With people living longer and later-life costs rising, many parents may understandably want or need to use more of their savings during retirement. With this in mind, inheritance should be seen as a possible bonus, rather than a substitute for building your own retirement pot." The warning arrives as experts continue to emphasise the significance of beginning pension saving early, enabling contributions to benefit from decades of compound growth. Workers can also enhance retirement savings through employer pension contributions and pension tax relief. For a basic-rate taxpayer, every £80 contributed to a pension is topped up to £100 by the Government through tax relief, with higher-rate taxpayers able to claim additional relief. The statistics indicate that while younger Britons may be anticipating a future financial boost, many parents are progressively planning to use their funds themselves – potentially leaving the inheritance pot far emptier than their offspring anticipate.