According to a pair of recent studies, more and more people nearing retirement are ill-prepared for it. Most 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 rapidly becoming a quaint custom of history.
Fewer mothers and fathers intend to leave a legacy
Allianz, a provider of life insurance, noted that most baby boomers -- those born roughly between 1946 and 1964 -- had better not wish for a fat inheritance as their retirement nears. Times being what they are, only 14 percent of boomers' parents feel they can afford to leave their kids an inheritance.
According to "Someday All This Will Be Yours" author Hendrik Hartog:
"Culturally, the idea of a legacy has disappeared for all but the very wealthy."
Children give parents support
Elderly mothers and fathers are just attempting to make a living off of the few pennies they have left at this point. The kids end up taking care of their parents in most cases.
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."
Paying for medical
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 economic downturn, according to the Star Tribune. Retirement is becoming much more costly with increasing costs of medical care.
Not expecting it to cost so much
Allianz did a study recently that showed a 3rd of transition baby boomers did not know how much they even needed 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."
With regards to retirement, the biggest problem is that people do not factor in taxes or inflation. About 16 percent considered taxes in their estimate while only 10 percent believed of inflation.
Preparations take too long
Allianz decided that starting early is crucial in preparing for retirement. Almost half of those surveyed -- 43 percent -- said they will not concern themselves with accruing retirement savings until they are five years away from closing the door on their careers. Another a 16 percent said they will wait until one year or less away from retirement to start.
Fewer mothers and fathers intend to leave a legacy
Allianz, a provider of life insurance, noted that most baby boomers -- those born roughly between 1946 and 1964 -- had better not wish for a fat inheritance as their retirement nears. Times being what they are, only 14 percent of boomers' parents feel they can afford to leave their kids an inheritance.
According to "Someday All This Will Be Yours" author Hendrik Hartog:
"Culturally, the idea of a legacy has disappeared for all but the very wealthy."
Children give parents support
Elderly mothers and fathers are just attempting to make a living off of the few pennies they have left at this point. The kids end up taking care of their parents in most cases.
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."
Paying for medical
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 economic downturn, according to the Star Tribune. Retirement is becoming much more costly with increasing costs of medical care.
Not expecting it to cost so much
Allianz did a study recently that showed a 3rd of transition baby boomers did not know how much they even needed 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."
With regards to retirement, the biggest problem is that people do not factor in taxes or inflation. About 16 percent considered taxes in their estimate while only 10 percent believed of inflation.
Preparations take too long
Allianz decided that starting early is crucial in preparing for retirement. Almost half of those surveyed -- 43 percent -- said they will not concern themselves with accruing retirement savings until they are five years away from closing the door on their careers. Another a 16 percent said they will wait until one year or less away from retirement to start.
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