More than half of millennials relying on inheritance from parents to pay off debts, research finds

20 per cent admitted they were worried their parents' spending habits might damage the total

(Getty Images/iStockphoto)

Two thirds of millennials expect to inherit financially from their parents, and many are banking on this windfall to help pay off their debts, according to a new study.

A generation universally seen as doomed when it comes to their finances, two thirds of millennials who went to university will never pay off their debt, according to the Student Loans Company.

What’s more, the housing crisis means that one in four people aged between 20 to 34 still live with their parents, and the lacklustre jobs market means more than half of the UK’s graduates are not in jobs that require a degree.

But, while they may struggle to join the housing market and be laden with debt from their education, many believe financial inheritance from their parents will solve all their money woes.

New research from First Direct has found that 66 per cent of millennials expect to inherit from their families with 43 per cent planning on using it to pay off their debts.

Due to the size of the windfall they expect to receive, 19 per cent said saving isn’t important to them.

The survey of 2,000 18-32-year-olds also revealed that the average amount millennials believe they will receive as inheritance is just over £80,000 with a fifth admitting they are wary of their parents spending habits damaging the total.

The research comes following the news that six in 10 millennials claim to be going through a “quarter-life” crisis – the main cause of which was found to be financial difficulties with more than half saying they spend more than they earn each month.

“With three out of four millennials not currently saving on a regular basis and only one in two hoping to start saving in the next five years it’s no wonder financial difficulties are a major cause of quarter life crises,” said Nick Harrison, head of products at First Direct.

“Rather than an inheritance, the best way to plan for your financial future is to prioritise regular saving.

“Saving even small amounts at first, can make a big difference to financial wellbeing, and setting goals or putting money into ‘buckets’ such as ‘debts’, ‘deposit’, or even ‘holiday’ can quickly add up.”