The coming years are set to see one of the largest transfers of wealth in history. Yet, without careful thought and advice, wealth often erodes far more quickly than expected. Preparing now can help ensure that lifetime savings are protected, rather than diluted, as they move between generations.
Studies repeatedly show that wealth rarely moves smoothly between generations. Around 70% of family wealth is lost by the next generation and as much as 90% by the third, most often due to lack of planning, tax inefficiency and unclear intentions rather than market performance.
Why intergenerational planning becomes more relevant now
At this stage of life, wealth is often more complex. Pensions may represent a significant portion of future value, alongside property, investments and cash savings. Children may be financially independent, but still part of longer‑term plans, whether through inheritance, support or shared assets.
Despite this, many people have limited awareness of how changes to pension and Inheritance Tax rules could affect what their families eventually receive. Without understanding how assets are taxed or transferred on death, well‑intentioned plans can lead to unexpected outcomes.
This makes now an important time to review how different pieces fit together and whether they still align with your intentions.
Pensions, Inheritance Tax and awareness gaps
For many families, pensions are increasingly being viewed not just as retirement income, but as part of wider estate planning. Changes in how pensions are treated for Inheritance Tax (IHT) purposes from next year mean that assumptions made years ago may no longer hold true.
Without up‑to‑date planning, families may face:
- Higher tax liabilities than expected
- Reduced flexibility in passing on wealth
- Difficult decisions made under time pressure.
Understanding how pensions interact with IHT and how beneficiary arrangements are set up, can make a significant difference to outcomes for loved ones.
Planning beyond the numbers
Preparing for the transfer of wealth isn’t just technical. It’s also personal. This stage of life often brings an opportunity to have more open conversations with family about intentions, expectations and values.
Clear communication helps avoid misunderstandings later on. It also allows plans to reflect not just financial efficiency, but the outcomes that matter most; whether that’s supporting education, protecting a partner, or leaving a thoughtful legacy.
Structuring wealth for the long term
Effective planning often involves looking at:
- How and when wealth might transfer
- Whether lifetime gifting could play a role
- How Inheritance Tax may affect the estate
- The balance between control, flexibility and simplicity
- How future beneficiaries will be prepared.
This is particularly relevant as pension rules, tax legislation and family circumstances continue to evolve. Regular reviews help ensure plans stay aligned with both personal goals and regulatory change.
Turning planning into confidence
Approaching retirement is about balance: enjoying the present while preparing for what comes next. Reviewing intergenerational plans now allows time to adapt, reflect and make deliberate choices, rather than reacting later under pressure.
With the right guidance, the Great Wealth Transfer can become less of an unknown risk and more of a structured, confident transition, for you and for those who follow.
Thoughtful planning today with your Finli Planner can help ensure that wealth supports your family’s future, rather than being quietly eroded along the way.