More than one in six (16 per cent) high-net-worth individuals (HNWI) over 60 years old have said they will likely need to rely on their children’s inheritance to pay for unexpected later life costs, Rathbones has found.

The firm’s survey of 100 HNWIs over 60 also revealed that 8 per cent would expect their children to pay for any care needs they may have in the future.

Despite the need for later life preparation, 19 per cent said they had not made plans to manage future care costs, while 7 per cent said they have "no idea" how they would be able to pay for theirs or their partner’s future care costs.

Rathbones also found that 28 per cent said they had not yet made any early changes in order to prepare for later life, such as downsizing from their current property.

Of those who hadn’t made any plans for their care costs, 31 per cent said they find it hard to plan for unknown costs, while 8 per cent said they feel they are too young to start thinking about care.

Despite some HNWIs not making plans, 18 per cent said they had spoken to a financial planner about setting aside money for care, with a further 20 per cent planning to take this step in the future.

However, 19 per cent said they were concerned about the impact that financial planning for later life would have on their current lifestyles (19 per cent) and their inheritance plans (14 per cent).

Rathbones financial planning director and accredited member of the Society for Later Life Lenders, Paul Sayers, said: "It can be tempting to stick your head in the sand, and avoid planning for the future, particularly for costs that you hope to never have. However, it’s vitally important that plans are put in place early to ensure that you can afford any of the curveballs that life may throw at you in later life.”

"We would encourage you to have conversations with your family about your future wishes, so there’s no surprises down the line and to minimise any last-minute emergency decision making.

"Speaking to a financial planner early will help you to map out how your wealth will support your wishes and consider the what ifs, so that you have the right plans in place. Preparing and having these conversations early are the best way to ensure a smooth later life, no matter what happens."

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