Survey: Only 10 Percent Of European Parents Have Enough Money For Heirs

London, United Kingdom (AHN) – A survey of consumer finances by Janus Capital Group found out that only 10 percent of European parents have significant wealth to leave to their children and other heirs.

Another 48 percent of more than 6,000 European surveyed said they were not sure if they have enough wealth to leave and 42 percent said they have no intention of leaving any significant wealth to their offsprings.

The survey, which had respondents from Britain, France, Germany, the Netherlands, Spain and Italy, blamed the financial crisis for creating a generation who have not saved enough and are averse to taking financial risks. Janus Capital said the results challenge the future of inter-generational wealth transfer in the continent.

Most of the respondents expected their long-term investment to be sufficient for their twilight years, but because of shrinking values of retirement funds, it left many Europeans ill-prepared for retirement, let alone leaving anything of financial value to their heirs.

Among the six nationalities that participated in the survey, the French had the highest percentage of likely passing on their wealth, while on the bottom on the list were Spanish and Germans. Britons were in the middle ground with 16 percent likely to leave significant wealth to the children.

Since 2001 there has been a decrease in proportion of old wealthy Britons who have inherited their wealth from 70 percent of 2,000 families in 1988 to just 24 percent of 1,000 families in 2001.

Presently, the average estate Britons hold is valued at $135,000 (90,000 pounds) and divided five ways. Janus Capital said the worth and division of estate would likely change, particularly because those in the age group 45 to 54 were unable or not willing to save enough. Among the changes this would bring is for postponement of retirement plans and longer employment for middle-aged Britons.

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