Legacy Income Set For 4% Increase Over Next Five Years
Legacy income for charities is set to rise by 4% over the next five years with charities set to receive legacy increases in excess of £650 million.
Unfortunately, this increase in legacy income also coincides with a fall in life expectancy, according to recent death projections forecast by the Office for National Statistics (ONS).
The new report suggests that life expectancy is currently slowing for both men and women since 2011 following decades of consistent improvements.
This will lead to a noticeable rise in the number of projected deaths. ONS predictions estimate that 3.1 million people will die in the UK during the next five years up to 2024.
When compared with the last forecast prediction made in 2017 of 3 million deaths, it signifies that declining life expectancy rates could indicate a further 123,000 additional deaths not estimated in previous reports.
In terms of charitable legacies over the next five years, this could signify an increase of 4.1% or £650 million.
Legacy foresight has estimate that this could mean 26,000 additional people will die per year, each leaving an average legacy of £25,000, leading to an annual legacy income increase of £130 million.
Meg Abdy, Development Director at Legacy Foresight, says:
“Death rates are one of key factors that determine the number and size of bequests charities can expect to receive. In the short to medium term these new projections will boost charity income, especially among larger charities.
“It’s important to remember that although improvements in life expectancy are not as optimistic as previously thought, people will still live longer on average than they do today. By 2050 1.5 million people will be aged 90 or over. This may be lower than the 1.8 million predicted back in 2016, but it’s still more than double the 600,000 we see today.”