According to dual recent surveys, 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 practical concept of what their retirement will cost. As a result, the custom of leaving an inheritance for your kids is disappearing.
Less stuff left out
Any person born between 1946 and 1964 is recognized as one of the baby boomers. About 14 percent of boomer's mothers and fathers say they will leave anything to their kids after they die, so baby boomers should not be anticipating any type of inheritance.
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."
Children give mothers and fathers support
Elderly parents 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 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."
Increasing med expenses
Right now, the average American's net worth is about $77,000, which was the same as it was 20 years back. The value of homes and other assets are dropping too with the economic downturn, according to the Star Tribune. Retirement is becoming much more expensive with increasing expenses of medical care.
Not anticipating it to cost so much
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."
On the subject of 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 believed of inflation.
Beginning earlier
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 from retirement to start.
Less stuff left out
Any person born between 1946 and 1964 is recognized as one of the baby boomers. About 14 percent of boomer's mothers and fathers say they will leave anything to their kids after they die, so baby boomers should not be anticipating any type of inheritance.
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."
Children give mothers and fathers support
Elderly parents 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 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."
Increasing med expenses
Right now, the average American's net worth is about $77,000, which was the same as it was 20 years back. The value of homes and other assets are dropping too with the economic downturn, according to the Star Tribune. Retirement is becoming much more expensive with increasing expenses of medical care.
Not anticipating it to cost so much
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."
On the subject of 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 believed of inflation.
Beginning earlier
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 from retirement to start.
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