Many of us dream of reaching significant milestones, whether it’s buying a home, starting a business, or planning that long-awaited adventure. In recent years, some have come to rely on the idea of an inheritance to help fund these major life events. But while it can be tempting to factor in an expected windfall into your financial planning, it’s important to proceed with caution. Here’s why.
Recent research shows that a quarter of UK adults are delaying significant life decisions until they receive an inheritance. Among younger adults, 18–34-year-olds, this rises to 27%. For many, this delay is driven by the increasingly high cost of living, rising property prices, and, for some, the sense that home ownership is out of reach without help.
But as Stacey Love, a tax and estate planning expert, points out, more than a quarter of people receive less inheritance than they expected. This brings home a crucial lesson: relying on an inheritance, which is often an uncertain and unpredictable asset, can be risky. The reality is that inheritance might not provide the financial support you anticipate, and basing your major life decisions on this possibility could leave you exposed.
Why Financial and Human Capital Should Be Your Foundation
Rather than hinging life goals on an uncertain future, it’s worth considering alternative approaches—ones that put you in control of your financial destiny. The first step is to ensure that your financial architecture is based on sound planning, using your existing financial capital as a cornerstone. This means building a robust savings and investment plan, ensuring you’re living within your means, and being prepared for the unexpected.
At the Academy of Life Planning, we often advocate for the development of human capital alongside financial capital. Your skills, knowledge, and experience are assets that can increase your earning potential, opening doors to new opportunities. By focusing on your personal and professional development, you are creating a sustainable path to achieving your goals, regardless of whether an inheritance materialises.
The Contingency Plan
Even if you do expect to inherit, it’s wise to treat this as a contingency plan rather than a certainty. Having open and honest conversations with family members about their estate plans is essential for managing expectations. But more importantly, by not relying solely on an inheritance, you give yourself the freedom to make informed, proactive decisions that align with your current financial position.
An inheritance, if it comes, can then become a bonus—an unexpected windfall that can accelerate your progress rather than being the foundation upon which your future is built.
Take Control of Your Future
It’s understandable that, with rising living costs, many people feel pressured to wait for a financial boost before taking big steps in life. But you don’t have to put your dreams on hold. By taking control of your finances now and investing in your own personal development, you’ll be better prepared for the future, no matter what happens.
At the Academy of Life Planning, we offer tools and guidance to help you create a financial plan that works for you. Whether you’re building your financial capital, developing your human capital, or planning for an uncertain inheritance, our approach ensures that you’re in control and equipped to face whatever the future holds.
It’s about making sure you have ‘enough’—in terms of money, opportunities, and personal growth—to live the life you want, without waiting for an uncertain windfall.
Get Started Today
Rather than waiting for a future that might never arrive, why not take action today? Start planning for your goals based on what you can achieve now. Our comprehensive support can help you make informed, confident decisions about your financial future.
Are you ready to take control and start building a secure, sustainable plan for your life? We’re here to help.
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