People with no children are significantly less prepared with inheritance plans and wealth planning support than those with children, research from Killik & Co has found.

The wealth management firm noted that child-free families were a growing segment of society, with this trend sent to accelerate as the size of families in the UK continues to fall with each generation.

It highlighted a “stark lack of preparation” compared to traditional family units, meaning child-free individuals were less likely to benefit from the tax advantages of having inheritance plans in place.

Almost two thirds (61 per cent) of people without children did not have a will, while 86 per cent had no lasting power of attorney.

Nearly a fifth (18 per cent) said they did not see the point of having a formal inheritance plan as they did not have children.

The research showed that the vast majority (84 per cent) had never received any wealth planning support.

When those without children were asked who they planned to leave their wealth to, 32 per cent said their partners, 23 per cent cited nieces and nephews, 21 per cent said their siblings, 18 per cent to charitable causes, and 11 per cent to friends.

Around one in six (16 per cent) did not plan to leave any inheritance at all, with 33 per cent of these individuals to focus their retirement on travelling and 30 per cent planning to improve their quality of life.

“Having children is no longer the assumed norm, with many opting, either by choice or circumstance, to be child-free,” said Killik & Co head of wealth planning, Will Stevens.

“This leads to an atypical situation, one in which inheritance planning cannot follow the most common route of going to their children, and leaving many people potentially holding more wealth without clear plans for others to inherit.

“It’s important that people have a clear plan in place about what will happen to their assets and how they will be used, and it’s important that people seek professional financial advice.

“Advisers can help you work on your remaining assets to ensure you have peace of mind, however that will be achieved.”

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