According to dual recent reports, most Americans who are nearing retirement age are not properly ready for their future. In fact, says one of the reports, most do not even have a realistic idea of what their retirement will cost. As a result, the custom of leaving an inheritance for your kids is vanishing.
Less stuff left behind
Only 14 percent of boomers' mothers and fathers think that they will leave any type of inheritance for their kids, which means most baby boomers should not hope for any type of inheritance, according to Allianz. Seniors include those born between 1946 and 1964.
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."
Change to supporting mothers and fathers
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 help.
Kay Kramer works at KLB Financial. 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."
Lifespan and med costs increase
Because we live longer now, the price of retirement is much higher than we might want it to be. Medical care expenses are increasing and the value of assets such as homes are decreasing. Right now, the average American is worth $77,000 in net worth, according to the Star Tribune, which is the same as it was 20 years ago. That is probably a bad sign.
Too much retirement cost
A second study from Allianz recently concluded that about a third of transition seniors -- 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, claims 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.
Best way to prepare
There were lots 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 begin 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.
Less stuff left behind
Only 14 percent of boomers' mothers and fathers think that they will leave any type of inheritance for their kids, which means most baby boomers should not hope for any type of inheritance, according to Allianz. Seniors include those born between 1946 and 1964.
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."
Change to supporting mothers and fathers
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 help.
Kay Kramer works at KLB Financial. 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."
Lifespan and med costs increase
Because we live longer now, the price of retirement is much higher than we might want it to be. Medical care expenses are increasing and the value of assets such as homes are decreasing. Right now, the average American is worth $77,000 in net worth, according to the Star Tribune, which is the same as it was 20 years ago. That is probably a bad sign.
Too much retirement cost
A second study from Allianz recently concluded that about a third of transition seniors -- 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, claims 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.
Best way to prepare
There were lots 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 begin 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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