A major survey of adults in the UK has revealed their widespread concerns about managing their parents’ finances.
New research from Schroders Personal Wealth (SPW) also uncovered a reluctance by UK adults to discus money matters with their family.
The Schroders Personal Wealth Family and Finances Report surveyed 1,000 UK adults aged 60 and above and 1,000 UK adults aged 35-59.
It found that 19% of the older age group have never spoken to their children about their finances at all, with the majority (37%) saying they wanted their children to be financially independent.
Some 28% did not think it was their children’s business to know about their finances and 23% admitted they found discussing their finances an “uncomfortable and overwhelming” conversation to have.
SPW says this reluctance to have financial conversations with family members is resulting in confusion and anxiety.
Just under a third (27%) of those aged 35-59 state they have no idea what their parents’ plans are for passing on their wealth, while 40% say they have some awareness, but do not know all the details.
Just over three in ten (32%) do not know who the executor of their parents’ will is. Despite this, 47% of those over 60 and who have a will in place state that their child/children are the executors of their will.
SPW says the issues are affecting respondents’ mental wellbeing with the report showing a clear anxiety about finances and discussing them with family members.
When asked how they felt about managing their parents’ money when they are no longer able to do so, 44% of the younger age group say that they feel worried.
Of those worried, over half (52%) are overwhelmed by the thought of managing their parents’ finances and 50% are afraid they might do something wrong.
A lack of financial knowledge also featured in the responses, with 23% admitting they do not know anything about finance so would not know where to start and 34% say they are worried about making decisions that could lose them money.
Ben Waterhouse, chief client officer at Schroders Personal Wealth, said: “As our research shows, not knowing about or understanding family finances can cause sleepless nights and feelings of being overwhelmed. This is where we truly believe that tackling the taboo of talking to your family about money is a key factor for mental wellbeing. Often, these conversations happen too late, or not at all.
“We believe more needs to be done to encourage stronger engagement with long-term Financial Planning, as well as promoting family money discussions. We hope this report highlights some of the reasons why wealth planning and discussions are important, and gives some food for thought on potential solutions.”
