Saving money in order to be able to leave an inheritance is becoming less of a priority for the older generation in Scotland, new research has found.
Travelling Takes Priority Over Leaving an Inheritance
According to the “How Scotland Lives” study by
Bank of Scotland, the over-55s would rather save in order to be able to go travelling during retirement than leave money for their families.
Last year’s study found that around one in four Scots over the age of 55 were aspiring to travel around the world in the next five years, and this year’s findings show that half of Scots over 55 are saving to go travelling in the next 1-2 years.
Only 13% of the over—55s said they are saving in the short term to leave money for their family. This percentage drops for the 45-54 age group, with only 2% saying they are putting aside money to pass on.
As well as saving to travel, older Scots are saving to treat themselves too. Almost two in five (37%) of Scots over 55 are saving for a specific purchase and older Scots are saving to treat themselves instead of someone else. Less than a third of older Scots are saving to help out a family member should they need it and only one in ten are saving to help pay for an event, such as a family wedding.
Savvy Savers
The study describes older Scots as ‘savvy savers’, highlighting that three out of five are putting some money away for an emergency. And they are five times more likely to plan for a rainy day than saving directly to pass money to their family as part of an inheritance.
“With more people living longer, it’s encouraging to see that older Scots are putting their savings to good use in later life,” said Mike Moran, Director, Bank of Scotland. “Getting into the habit of saving a little each month can make the difference when it comes to treating yourself as you approach retirement but it’s good to see that older Scots are also focused on keeping some money back for a rainy day.”
Concerns Over Lack of Will Writing
However, while it’s good to hear that the older generation are making financial plans to see them through retirement, a separate study has warned of a lack of preparation with regards to writing wills.
The research, by
Royal London, found that three out of five adults don’t have a will in place, and a third haven’t even thought about writing one.
The older generation are generally assumed to be more prepared when it comes to estate planning, however the research found that are a quarter of the over-55s are without a will, and one in six have never thought about writing one.
Adults with children apparently feel more pressure to write a will, with half (48%) saying they have not written a will but want to write one in the near future. Three in five parents with children under 18 (58%) also haven’t chosen guardians for their children in the event of their death.
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