According to a set of recent studies, more and more people nearing retirement age are ill-prepared for it. Many are not even aware of the true expenses that lay ahead of them. As a consequence, the custom of leaving a financial legacy for you children is quickly becoming a quaint custom of history.
Less stuff left out
Only 14 percent of boomers' mothers and fathers think that they will leave any type of inheritance for their children, which means most baby boomers should not wish for any kind of inheritance, according to Allianz. Seniors contain those born between 1946 and 1964.
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."
Kids give parents support
Elderly mothers and fathers are just trying to make a living off of the few pennies they have left at this point. The children end up taking care of their mothers and fathers in most cases.
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
Because we live longer now, the expense of retirement is much higher than we might want it to be. Medical care costs 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 most likely a bad sign.
Underestimating price of retirement
A second study from Allianz recently concluded that about a third 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.
President and CEO of Allianz Life, Walter White, explained:
"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.
Preparations take too long
Allianz concluded that starting early is crucial in preparing for retirement. Nearly half of those surveyed -- 43 percent -- said they will not concern themselves with accruing retirement savings until they are five years 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.
Less stuff left out
Only 14 percent of boomers' mothers and fathers think that they will leave any type of inheritance for their children, which means most baby boomers should not wish for any kind of inheritance, according to Allianz. Seniors contain those born between 1946 and 1964.
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."
Kids give parents support
Elderly mothers and fathers are just trying to make a living off of the few pennies they have left at this point. The children end up taking care of their mothers and fathers in most cases.
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
Because we live longer now, the expense of retirement is much higher than we might want it to be. Medical care costs 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 most likely a bad sign.
Underestimating price of retirement
A second study from Allianz recently concluded that about a third 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.
President and CEO of Allianz Life, Walter White, explained:
"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.
Preparations take too long
Allianz concluded that starting early is crucial in preparing for retirement. Nearly half of those surveyed -- 43 percent -- said they will not concern themselves with accruing retirement savings until they are five years 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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