Most Cannot Afford To Leave Inheritance
According to a set of recent reports, more and more people nearing retirement are ill-prepared for it. Many are not even aware of the true expenses that lay ahead of them. As a consequence, the tradition of leaving a financial legacy for you kids is swiftly becoming a quaint custom of the past.
No legacy is important
Only 14 percent of boomers' parents think that they will leave any type of inheritance for their kids, which means most baby boomers should not hope for any sort of inheritance, according to Allianz. Baby boomers include those born between 1946 and 1964.
Hendrik Hartog, author of "Someday All This Will Be Yours," wrote:
"Culturally, the idea of a legacy has disappeared for all but the very wealthy."
Kids give mothers and fathers support
A lot of times, children end up taking care of their mothers and fathers for the rest of their lives. Elderly mothers and fathers are just trying to make it on the few pennies they have left.
Kay Kramer of KLB Financial 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."
Increased costs for a lifetime
Right now, the average American's net worth is about $77,000, which was the same as it was 20 years ago. The value of homes and other assets are dropping too with the tough economy, according to the Star Tribune. Retirement is becoming much more expensive with increasing costs of medical care.
Not saving enough
Those from 55 to 65 did not even know how much cash they should be saving for retirement, according to an Allianz study.
Walter White is the President and CEO of Allianz Life. He said:
"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."
About 10 percent of those in the survey even believed about inflation when preparing for retirement. About 16 percent looked at taxes when it came to estimating for the future. People typically do not contain taxes or inflation.
Best way to prepare
There were a lot of people who did not prepare early. In fact, 16 percent said they would wait until they were a year away from leaving the job to start saving. Another 43 percent said that they did not consider retirement until they were five years away from leaving their job. Allianz suggests everyone get a head start.
No legacy is important
Only 14 percent of boomers' parents think that they will leave any type of inheritance for their kids, which means most baby boomers should not hope for any sort of inheritance, according to Allianz. Baby boomers include those born between 1946 and 1964.
Hendrik Hartog, author of "Someday All This Will Be Yours," wrote:
"Culturally, the idea of a legacy has disappeared for all but the very wealthy."
Kids give mothers and fathers support
A lot of times, children end up taking care of their mothers and fathers for the rest of their lives. Elderly mothers and fathers are just trying to make it on the few pennies they have left.
Kay Kramer of KLB Financial 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."
Increased costs for a lifetime
Right now, the average American's net worth is about $77,000, which was the same as it was 20 years ago. The value of homes and other assets are dropping too with the tough economy, according to the Star Tribune. Retirement is becoming much more expensive with increasing costs of medical care.
Not saving enough
Those from 55 to 65 did not even know how much cash they should be saving for retirement, according to an Allianz study.
Walter White is the President and CEO of Allianz Life. He said:
"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."
About 10 percent of those in the survey even believed about inflation when preparing for retirement. About 16 percent looked at taxes when it came to estimating for the future. People typically do not contain taxes or inflation.
Best way to prepare
There were a lot of people who did not prepare early. In fact, 16 percent said they would wait until they were a year away from leaving the job to start saving. Another 43 percent said that they did not consider retirement until they were five years away from leaving their job. Allianz suggests everyone get a head start.
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posted by Vittoria @ September 15, 2015
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