Young people are leaving empty-handed: Why do retirees especially receive inheritance?

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The majority of the Swiss population receives an inheritance only when they reach retirement age. Only one in seven people benefits from inheritance advances. This is the finding of the “Axa Prevention Study 2023”. This shows that the assets acquired last year reached 88 billion francs.

But the volume of inheritance is clearly divided in favor of older heirs. Thanks to rising life expectancy, most people only receive an inheritance when they reach retirement age. Only one in ten people under the age of 60 living in Switzerland has inherited at death.

Not much savings yet

But expensive projects often occur early in life. “Many big expenses, such as buying a house, further education or paying for children, are often made in the teenage or middle ages when there is not much savings. Depending on the situation, the project may have to be postponed for several years,” says prudential expert Kume Hasani-Ferati.

On the other hand, most of the elderly are in good financial condition. “Around age 55, wealth accumulates as most debts are paid off, your own expenses are reduced, and inheritance or retirement fund money can also be added,” he says. Available data confirms this theory. Almost 14 percent of people under 30 have assets over 250,000 francs, while the figure is 48 percent for people aged 60-65.

The taboo subject of death

It is said that in many cases, an inheritance advance or a gift to the younger generation can be meaningful for this reason. Only one in seven people surveyed, or about 15 percent, said they had received an inheritance advance. Axa explains the low figures by saying that the issue is not adequately addressed.

Approximately one-third of families have never discussed inheritance, while another quarter have merely remained “on the sidelines.” It could be because the topic doesn’t seem topical yet, because survey respondents believe parents should address the issue, because there is little money in either case, or because it is uncomfortable to talk about the death of someone close to them.

Talk about it openly

That’s why retirement experts recommend discussing this issue “early and openly.” Because: “Two taboo topics come together; money and death. If the inheritance and the financial situation of the parents are not discussed within the family, this makes possible solutions for financing the younger generation’s projects even more difficult,” says pension expert Kume Hasani-Ferati.

According to the information obtained, the online survey was conducted with more than 1,000 people aged 18-65 between the end of March and the beginning of April 2023. (pbe/SDA)

Source :Blick