Amongst other aspects, the ninth HSBC Future of Retirement survey investigated the expectations and often contradictory realities of tax planning, retirement and inheritance, by surveying over 16,000 people throughout 15 different countries from July 2012 to April 2013.
As well as uncovering the inherent difficulties in preparing for retirement, it also highlighted startling statistics about the day-to-day affordability issues faced by underprepared pensioners and the impact those issues have on plans to leave a significant financial legacy for their loved ones.
The negative effects of UK inheritance tax have compounded the problems faced by 39% of inadequately prepared British retirees, which has led to a situation where 64% of British pensioners have a less than desirable legacy to leave for their immediate family members.
69% of inheritance tax-exempt Australians will leave an average legacy of €368,855 to their family members, which almost equates to twice as much as Brits and their €208,775 and almost triple the worldwide average of €129,914, illustrating the detrimental effects of UK inheritance tax.
Because UK inheritance tax can reduce final legacies so drastically, retirees are looking into alternatives such as paying for marriages or education fees, as opposed to looking into any of the popular, HMRC-endorsed financial solutions that are now widely available.
By Anthony Standring
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