New research by Titan Wealth reveals a gap between retirees’ confidence and their spending behaviour, with many potentially able to spend or gift more strategically. The findings also highlight growing engagement with estate planning, as recent inheritance tax changes prompt more over-55s to review their financial plans.
Among UK parents aged 55 and over with assets totalling £650,000 or more, a subtle but important gap is emerging between confidence in retirement spending and the inheritance and gifting strategies.
New research by Titan Wealth finds that, while the vast majority within this group who are likely to be subject to inheritance tax (92%) are confident in how much they can afford to spend in retirement, 94% of financial advisers (IFAs) believe these parents could benefit from spending more strategically or making greater use of gifting to loved ones.
Almost half (49%) of individuals in this group say they would be willing to spend or gift earlier if they felt confident it would not affect their long-term financial security, with a further 37% open to increasing spending or bringing gifting forward. Two thirds (66%) believe financial gifts are most impactful when helping children or grandchildren onto the property ladder – a milestone typically reached in the early thirties1 –highlighting a clear opportunity to better align financial confidence with more timely support.
IFAs see this dynamic play out in practice: 68% say clients frequently retain wealth for inheritance that could have had greater impact if gifted earlier, with a further 17% observing this very frequently.
This tendency to hold back is reflected in the underlying behaviours shaping financial decisions in later life. More than a quarter (28%) of over 55s say their desire to preserve wealth for inheritance is influencing how much they spend in retirement, with 26% of IFAs identifying this as a significant contributing factor. However, IFAs point to a broader behavioural pattern as the primary barrier: 29% cite the long-established tendency among Brits to prioritise saving over spending. Together, these factors highlight a clear opportunity to rebalance habits – enabling individuals to make more strategic use of both spending and gifting, without losing sight of longer-term legacy goals.
Evolving inheritance tax rules are also prompting a shift in how this group approaches wealth decisions in later life. According to IFAs, the most common sources used for gifting are General Investment Accounts (56%), cash savings (54%), defined contribution pensions (42%) and investment bonds (40%). In response to recent changes to IHT exemptions, 39% of over 55s have already begun adjusting their estate planning, with a further 33% expecting to take action. This growing engagement suggests an increasing willingness to revisit how wealth is structured and passed on, creating an opportunity to integrate more proactive gifting and spending strategies alongside longer-term inheritance planning.
Lee Quinn, Chartered Financial Planner at Titan Wealth:
“Strategic spending and earlier gifting in retirement are effective but underutilised ways of reducing future IHT liabilities – and improving clients’ life experiences.While the vast majority of people approaching or in retirement are confident they know how much they can afford to spend in their later years, half would spend and gift more if they were happy it wouldn’t affect their security in the long-term. As financial planners, it’s vital that we understand our clients’ priorities for expenditure during retirement, taking their concerns seriously but balancing it with effective planning.
“People have worked diligently throughout their lives, saving for retirement, so it’s always important to make sure the hard-earned money is used effectively to cover day-to-day life or even the unexpected health costs that may come later in life, but that it’s also spent and gifted in an enjoyable way. Having a good understanding of how much you can afford to contribute to your grandchild’s first house or to spend on your bucket list holiday will only add to the joy.”
* PureProfile interviewed 150 UK Independent Financial Advisers between 9 April 2026 and 13 April 2026 to understand the attitudes and behaviours of their clients. Find Out Now surveyed 379 UK parents aged 55+ with assets totalling £650k+ between 9 April 2026 and 10 April 2026.
