Despite wanting to leave an inheritance, the majority of UK adults are struggling to do so, according to a new study from wealth manager St James's Place.

Economic pressures are hindering the next generation's ability to pass on wealth or assets to their loved ones, the report says.

While two-thirds (68%) of UK adults believe it’s important they leave an inheritance, mortgage and rental costs pose significant challenges for future retirees.

More than one in eight (13%) of those approaching retirement anticipate still having mortgage payments to make for some time, compared to 4% of current retirees.

Additionally, 16% foresee not owning a property in retirement and continuing to pay rent, reflecting the changing economic conditions faced by different generations.

More than half (55%) of future retirees expect to provide financial support to other generations in their retirement, stretching finances even further.

For one in 10 (9%) supporting other generations means they will have to reduce the amount they are able to pass on in inheritance.

That’s left confidence about inheritance plans falling among future retirees. Some 26% of admitted they don’t feel confident they have the right plans in place compared to 14% of current retirees.

Overall, the next generation is a third less likely to pass down assets, according to the study. While 65% of current retirees expect to pass down property to their family through inheritance, the figure drops to just 45% among those yet to retire.

Similarly, cash savings are planned to be passed on by 60% of current retirees, contrasting with only 40% of future retirees who share the same intention.

Claire Trott, divisional director for retirement and holistic planning at St James’s Place, said: “The next generation of retirees are grappling with unique economic circumstances compared to their parents and grandparents. Homeownership is increasingly challenging, leading many to anticipate paying off mortgages and renting well into retirement.

“Additionally, supporting others financially in retirement is becoming more common. Overall, this means that fewer people think they’ll be able to pass on wealth or other assets to loved ones in an inheritance.”

She said the study underscores the importance of proactive Financial Planning for future retirees. She said: “To secure a legacy for loved ones, it’s more important than ever to establish a robust financial plan early on.”

• Research conducted for St James’s Place by Opinium, among 4,000 UK adults between 27 February – 8 March. All results are weighted to nationally representative criteria.