Fewer Inheritances As Cost Of Retirement Goes Up

الثلاثاء، 22 سبتمبر 2015

By Cornelius Nunev


According to dual recent studies, most Americans who are nearing retirement are not adequately ready for their future. In fact, says one of the reports, most do not even have a realistic concept of what their retirement will cost. As a result, the custom of leaving an inheritance for your children is disappearing.

Boomers not leaving something behind

Anyone born between 1946 and 1964 is considered one of the baby boomers. About 14 percent of boomer's mothers and fathers say they will leave anything to their kids after they die, so baby boomers should not be expecting any sort of inheritance.

Hendrik Hartog is the "Someday All This Will Be Yours" author who said:

"Culturally, the idea of a legacy has disappeared for all but the very wealthy."

Paying for parents

Instead, many elderly parents are using every cent they accumulate to live the remainder of their own lives. Often, it even becomes up to their children to give them a hand.

KLB Financials Kay Kramer said:

"There's no question that 10 years ago people were expecting greater inheritances than they are now. With very few exceptions, people don't want to count on anything. And we've got some people who are actively helping parents out because they don't have enough."

Paying for medical

Right now, the average American's net worth is about $77,000, which was the same as it was 20 years back. The value of homes and other assets are dropping too with the economic depression, according to the Star Tribune. Retirement is becoming much more costly with increasing costs of medical care.

Not saving enough

A second study from Allianz recently concluded that about a 3rd of transition baby boomers -- those between the ages of 55 and 65 -- were not even sure of how much they will have to accrue for retirement.

Allianz Life President and CEO Walter White wrote:

"It's alarming that so many boomers on the cusp of retirement are still unclear about the basic factors which determine their ability to fund their lifestyle once they stop working."

Most have also not properly factored inflation and taxes into their projected retirement needs, says Allianz. According to its report, only 10 percent of those surveyed identified inflation as a concern in preparing for retirement. Likewise, only 16 percent mentioned taxes in estimating future needs.

Beginning earlier

If you need an excellent retirement account by the time you get there, you have to start early, according to Allianz. About 16 percent said they would not start working on retirement until they were a year or less away from retirement. Another 43 percent said they would not start saving for retirement until they were five years away. Those are bad numbers, and you also should get a head start.




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