| Relying on inheritance to fund retirement is risky as it can’t be guaranteed | Starting early with small, regular pension contributions can help you benefit long-term compounding | Take advantage of employer contributions, combine pension pots and maximise tax relief |
Banking on inheritance to fund your retirement is a potentially risky move – it’s time to take your financial future into your own hands.
The uncertainty of inheritance
Research1 has indicated that some Gen Z and Millennials could be left without sufficient retirement funds due to their own inaction. About a quarter of this group haven’t considered their financial plans for later life as they’re expecting to inherit property or money. No one can be certain of what they will inherit and when; people are living longer the cost of care is rising and IHT rules and tax thresholds could change. Relying on inheritance could therefore result in a financial shortfall when you need it most.
Stand on your own two feet
It’s never too early to start preparing for your future. Even if you are currently saving for other big life events, such as a house deposit or a wedding, try to set aside a dedicated amount each month for your pension. It doesn’t matter if it’s a small amount; it’s the regular contributions that matter as they soon add up over a long period of time and benefit from growth. Over the years to retirement, you can top up your regular contributions with lump sum payments, such as bonuses. Plus, you can benefit from tax relief with each contribution worth up to 100% of earnings and within the current £60,000 Annual Allowance.
How to boost your pension
Remember to:
1Standard Life, 2025
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for guidance only. Some rules may vary in different parts of the UK.