The ‘most common’ money mistake people in their 60s regret | Personal Finance | Finance

Thinking about money takes effort and good planning. It is a task that is often forgotten or even neglected. Britain has seen the sharpest fall in average wealth per adult in the developed world since 2020, Swiss bank UBS said in its latest Global Wealth Report. Britons’ individual wealth, measured by the value of assets such as property, stocks and shares, between 2020 and 2025 fallen around £28,500.

It is perhaps no surprise that many Brits regret some of the steps they have or have not taken in managing their finances. The consequences of this occur later in life, often when people retire. Financial advisors responsible for managing hundreds of millions of pounds have talked about the most common mistakes they see. One of these is leaving inheritance tax planning too late; Many people in their 60s wish they had started doing this sooner as a method of estate planning.

There are ways to reduce the amount of inheritance tax your family may have to pay. For example, you can donate up to £3,000 each tax year using your annual tax-free gift allowance, and this gift will be immediately exempt from inheritance tax. For larger gifts, the seven-year rule generally applies.

This means that if you donate money, property or other assets and you live for another seven years, the gift is normally not included in calculating inheritance tax.

However, many people delay giving money or property to their loved ones because of the seven-year rule. They hold on to their money or assets because they worry they won’t live that long. If they die before making the gift or within seven years of making the gift, these assets are usually included in their estate when calculating inheritance tax, meaning their family may have to pay more inheritance tax.

Jo Summers, of law firm Jurit, said: Telegram: “One of the most common regrets I see in people in their 60s is leaving important financial planning too late.

“Many people spend years worrying about making gifts to their children or grandchildren, only to later realize that a significant portion of their estate could be lost to inheritance tax, which could have been reduced with earlier planning.”

Summers added: “Often after 10 years they realize that they survived seven years from when they first thought about making the gift, but because they didn’t make the gift the assets still belong to them and will be subject to inheritance tax when they die.

“Not only that, but because they are now 10 years older, they are even less likely to survive the full seven years.

“The general rule is that the sooner you give a gift, the better; as long as you don’t give too many gifts, of course.”