"People naturally worry about whether they'll have enough money to fund later-life care, particularly as people are living longer and care costs continue to rise."
- Yasin Patel - Mattioli Woods
New research has found that over-55s are most concerned about the rising cost of later-life care when considering the wealth they will pass on, leading many to overlook Inheritance Tax (IHT) planning.
According to research conducted by YouGov for wealth management and employee benefits firm Mattioli Woods, when asked about their biggest concerns in passing on assets, over-55s ranked paying for care or later-life costs as their primary worry. This ranked above Inheritance Tax, the risk of running out of money in retirement, ensuring fairness between beneficiaries, and potential family disputes.
Those aged 35 to 44 are the most concerned about paying too much Inheritance Tax, while those aged 45 to 54 are the most worried about running out of money during their lifetime.
Meanwhile, 23% say they have never assessed whether their estate could be subject to Inheritance Tax, while 22% believe it will be.
Confidence in estate planning is also mixed. 41% believe their current arrangements would minimise Inheritance Tax, while 23% are not confident their plans would reduce any future liability.
Mattioli Woods says that while the findings suggest that many older people are rightly focused on funding later-life care, less attention is being given to how estates will ultimately be structured and taxed.
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"People naturally worry about whether they'll have enough money to fund later-life care, particularly as people are living longer and care costs continue to rise," Yasin Patel, wealth management director at Mattioli Woods, said.
"For many families, maintaining financial independence in retirement understandably takes priority over what happens to their estate afterwards. But focusing solely on funding later life can mean Inheritance Tax planning slips down the priority list.
"Good estate planning isn't simply about reducing tax. It's about making informed decisions, ensuring assets pass to the right people in the right way and giving families greater certainty during what is often an emotional and stressful time. Starting these conversations earlier gives families more options – whether that's reviewing wills, making lifetime gifts where appropriate, or understanding how pensions fit into an estate.
"Proactive planning can help ensure more wealth reaches future generations rather than being lost unnecessarily through poor preparation."
