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 studies, most do not even have a realistic idea of what their retirement will cost. Consequently, the custom of leaving an inheritance for your sons or daughters is disappearing.
Fewer mothers and fathers plan to leave a legacy
Only 14 percent of boomers' mothers and fathers think that they will leave any sort of inheritance for their kids, which means most baby boomers should not hope for any sort of inheritance, according to Allianz. Seniors contain 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."
Helping mothers and fathers out now
A lot of times, kids end up taking care of their parents for the rest of their lives. Elderly mothers and fathers are just attempting to make it on the few pennies they have left.
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 cost 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.
Too much retirement cost
Allianz did a study recently that showed a 3rd of transition seniors did not know how much they even required 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 issue is that people do not factor in taxes or inflation. About 16 percent considered taxes in their estimate while only 10 percent imagined of inflation.
Begin as early as possible
Allianz concluded 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 begin.
Fewer mothers and fathers plan to leave a legacy
Only 14 percent of boomers' mothers and fathers think that they will leave any sort of inheritance for their kids, which means most baby boomers should not hope for any sort of inheritance, according to Allianz. Seniors contain 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."
Helping mothers and fathers out now
A lot of times, kids end up taking care of their parents for the rest of their lives. Elderly mothers and fathers are just attempting to make it on the few pennies they have left.
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 cost 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.
Too much retirement cost
Allianz did a study recently that showed a 3rd of transition seniors did not know how much they even required 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 issue is that people do not factor in taxes or inflation. About 16 percent considered taxes in their estimate while only 10 percent imagined of inflation.
Begin as early as possible
Allianz concluded 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 begin.
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