Finns inherit property and cash but prefer saving over spending

By admin On Feb 19, 2025

Testament in Helsinki. LEHTIKUVA

A survey by Aktia Bank reveals that Finns most commonly inherit real estate, apartments, or holiday homes, followed by cash assets. The results highlight a cautious approach to inherited wealth, with many choosing to save or pay off debts rather than spend.

The survey, conducted in October, included 1,000 respondents. Of those, 43% had already received an inheritance, while 33% expected to inherit in the future.

One in five did not expect to receive an inheritance at all. Among the most sceptical were 25–34-year-olds, while belief in future inheritance was strongest among those earning over €50,000 per year.

Stocks, securities, and investment fund units were reported as part of inheritance by 21% of respondents, with higher-income groups more likely to receive financial assets. Those earning over €100,000 annually were the most likely to inherit stocks or other securities.

According to Lasse Corin, chief economist at Aktia, Finnish households hold around 45% of their financial assets in bank accounts, 18% in stocks, and 16% in investment funds. “With interest rates low, keeping money in bank accounts is not the best option. Stocks, securities, and investment funds can be converted into cash quickly with some planning. It’s smart to put money to work,” Corin said.

He also noted that diversification beyond real estate is advisable for those with significant wealth. “Spreading assets across different categories reduces risk,” he added.

Finns tend to handle inheritances pragmatically. The most common uses for inherited wealth are saving, repaying loans, or spending on housing and everyday expenses. Among 18–24-year-olds, 72% planned to save their inheritance. Debt repayment was most common among those aged 25–54, while spending was more prevalent among 45–64-year-olds.

“This behaviour is logical,” Corin said. “People have debts at certain life stages, and once those are paid off, spending increases.”

Younger respondents showed interest in investing, though this was most common among those earning over €75,000 annually. “Money doesn’t grow on trees, but you can make it grow,” Corin said.

Source: www.helsinkitimes.fi