Care costs dominate retirement concerns with most over-55s unprepared for Inheritance Tax hit

• Later-life care costs are the top concern when passing on wealth
• Inheritance Tax ranks alongside fears of running out of money in retirement
• Younger age groups show different financial priorities around Inheritance Tax and retirement income
• Nearly a quarter have never assessed whether their estate could face Inheritance Tax
• 22% believe their estate will be subject to Inheritance Tax
• Only
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  41% are confident their estate planning would reduce Inheritance Tax liability
• South East shows lowest confidence in estate planning to mitigate Inheritance Tax

New research* conducted by YouGov, for leading UK wealth management and employee benefits firm, Mattioli Woods, highlights that that while over-55s are increasingly focused on the rising cost of later-life care, many are overlooking Inheritance Tax planning that could materially impact the wealth they pass on.

When asked about their biggest concerns in passing on assets, over-55s ranked paying for care or later-life costs as their primary worry – above Inheritance Tax, the risk of running out of money in retirement, ensuring fairness between beneficiaries, and potential family disputes.

By contrast, priorities shift in younger age groups. Those aged 35 to 44 are most concerned about paying too much Inheritance Tax, while those aged 45 to 54 are most worried about running out of money during their lifetime.

Despite Inheritance Tax featuring prominently among financial concerns, many remain unprepared. Almost a quarter (23%) say they have never assessed whether their estate could be subject to Inheritance Tax, while 22% believe it will be.

Confidence in estate planning is also mixed. Just 41% believe their current arrangements would minimise Inheritance Tax, while nearly a quarter (23%) are not confident their plans would reduce any future liability. The findings suggest that while many older Britons are rightly focused on funding later-life care, less attention is being given to how estates will ultimately be structured and taxed.

Regionally, respondents in the South East (27%) reported the lowest confidence in their estate planning to minimise Inheritance Tax, followed by Yorkshire (25%) and the South West (24%).

Those in the North West felt best prepared, followed by the East Midlands and the East of England.

Yasin Patel, Wealth Management Director at Mattioli Woods, said: “People naturally worry about whether they’ll have enough money to fund later-life care, particularly as people are living longer and care costs continue to rise. For many families, maintaining financial independence in retirement understandably takes priority over what happens to their estate afterwards. But focusing solely on funding later life can mean Inheritance Tax planning slips down the priority list.”

Mattioli Woods recently integrated Kingswood Group under a unified brand, following its October 2025 merger. The combined business now oversees £32 billion in assets under management, administration and advice, serving more than 30,000 clients.  With over 200 financial advisers across 40+ UK offices, the Group says the integration strengthens its position as a leading national wealth manager and enhances its ability to deliver joined-up wealth planning, investment management and employee benefits services.

Yasin Patel continues: “Good estate planning isn’t simply about reducing tax. It’s about making informed decisions, ensuring assets pass to the right people in the right way and giving families greater certainty during what is often an emotional and stressful time. Starting these conversations earlier gives families more options – whether that’s reviewing wills, making lifetime gifts where appropriate, or understanding how pensions fit into an estate. Proactive planning can help ensure more wealth reaches future generations rather than being lost unnecessarily through poor preparation.”

* Source: Research carried out by YouGov with 2,174 UK adults between 1-2 June 2026

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