One in seven UK Brits are clinging to the hope of inheriting property or cash but 3 in 4 people whose parents go into care lose most of inheritance, the research by NFU Mutual found.

This is because a quarter of people who go into care pay for it by selling their property, with one million homes sold in the past five years to fund care alone.

More than two million elderly people have also had to use their savings to fund care.

Sean McCann, personal finance specialist at NFU Mutual, said: “Younger generations could be in for a long wait if they’re banking on an inheritance to fund their retirement. People should be making their own retirement plans rather than factoring in property and wealth that could be whittled away by the cost of care and inheritance tax.”

The research highlighted a “naivety regarding the cost of care and a lack of inheritance tax planning”.

A third of Brits said their parents had made no plans for the impact of old age care on their estates and a similar number admitted they failed to factor this cost into their own planning.

And the gap in retirement provision is set to worsen as councils tighten budgets for elderly residential care.

Freedom of Information data collected by NFU Mutual showed that more than half of councils have slashed their care budgets over the last five years or reduced actual spending, suggesting a tightening of purse strings when it comes to old age care.

McCann added: “There’s no magic bullet to avoid care home fees during your lifetime but, with careful planning, you could protect your share of the family’s wealth after you die.

“Anyone who wants to see their life savings and the family home handed down to children and grandchildren needs to take professional advice to make sure they’re not paying more tax than they need to.”