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UK has generation of NITS: 51% banking on inheritance to survive
Embargoed until: Thursday 3 December 2009

SIXTY per cent of professionals aged 35-45 or 'NITS' (Need Inheritance To Survive) are banking on between 71 and 100 per cent of their parents' estates, but a major report out today reveals only a quarter of parents will be leaving that amount.

The YouGov/Elizabeth Finn Care study exposes the alarming number of people relying on inheritance, with more than half of those polled, 51 per cent, saying they would encounter financial problems in old age if they did not receive a parental windfall to bail them out.

Rob Tolan, head of policy and research at Elizabeth Finn Care, said: "The Government must do more to ensure people of working age make provisions for their future. This is especially important when one takes into account the care costs;  that inevitably comes with increased longevity."

More than half of 'NITS' assume all care costs will be covered by the state, unaware that the weekly state pension of £95.25 would not even cover a fifth of the average cost of residential care.

Elizabeth Finn Care believes this alarming shortfall could become one of the biggest challenges facing us over the coming decades.

Just over one fifth of men polled said they would have to postpone their retirement if they don’t receive a parental inheritance.

The prospect of not being able to retire at 65, coupled with an insufficient state pension with which to rely on in old age is failing to resonate with an alarmingly high number of professionals aged 35-45.

Rob Tolan added: “Unless more is done to encourage people to think about their future, our children and grandchildren will bear the brunt, through increased taxation, of woeful under-provision.”

Economist David Levin, Headmaster of City of London School, believes there is a 'massive time bomb building.'

He said: "These are sombre figures indeed. Those relying on state pension are either deluded or it’s wishful thinking on their part."

"It’s not too late, but they are massively committed already - so getting rid of their existing debt is going to mitigate against them being able to save for retirement."

“People are living longer and they are not going to have the resources to sustain themselves let alone enable themselves to be cared for when they are old."

Despite being in the midst of one of the deepest and longest recessions in British history (and one that has impacted ABC workers more than ever before) the study reveals that many have not altered their spending habits.

Some 36 per cent travelled abroad on holiday between August and October - no different to travel patterns before the current recession and despite greater concern over jobs and financial stability, and a less favourable exchange rate.

One in ten polled have travelled business or first class in the last three months and more than 80 per cent have eaten out at restaurants.


For further information, photographs and interviews, please contact:
Will Davies or Kellie Smith in the press office. Telephone: 020 7396 6741/ 07783 435 746 or kellie.smith@elizabethfinn.org.uk


Notes to Editors:
  • In the East Midlands, only 37 per cent consider themselves to be financially secure – which is lower than any other region in England.
  • Despite being the most in debt, in Yorkshire and the Humber nearly 90 per cent of professionals had not taken any measures to manage their debt.
  • More than one in ten Londoners say stress has caused them to be ill.
  • Only half of Londoners know the interest they are paying on their credit cards and less than two thirds know the rate they pay on their mortgages, giving rise to concern that people have lost grip of their finances.
  • Elizabeth Finn Care is a charity that supports people struggling to cope with sudden or unexpected changes in their circumstances.
  • Elizabeth Finn Care provides one-off and ongoing financial help, tailored to individual circumstances, as well as emotional support through our experienced caseworkers and national volunteer network.
  • People who seek help from Elizabeth Finn Care are coping with unexpected changes in their life and the resulting financial hardship, typically due to ill health, disability or marital breakdown.
  • Since mid 2008, we are increasingly helping people who are struggling financially after redundancy.
  • 75% of people who seek help from Elizabeth Finn Care have some level of mental health problems.
  • Since Elizabeth Finn Care was founded, we have given £130,000,000 to those in need.