According to a set of recent surveys, more and more people nearing retirement age 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 children is rapidly becoming a quaint custom of the past.
Fewer mothers and fathers intend to leave a legacy
Only 14 percent of boomers' parents think that they will leave any kind of inheritance for their kids, which means most baby boomers should not hope for any sort of inheritance, according to Allianz. Baby boomers include 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
Instead, many elderly mothers and fathers 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 a hand.
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 more to live longer
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 depression, according to the Star Tribune. Retirement is becoming much more costly with increasing costs of medical care.
Not anticipating it to cost so much
A second study from Allianz recently concluded that about a 3rd of transition baby boomers -- those between the ages of 55 and 65 -- were not even sure of how much they will need to accrue for retirement.
Walter White is the President and CEO of Allianz Life. He said:
"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."
About 10 percent of those in the survey even thought about inflation when preparing for retirement. About 16 percent looked at taxes when it came to estimating for the future. People generally do not include taxes or inflation.
Begin early
If you would like a great retirement account by the time you get there, you need to start early, according to Allianz. About 16 percent said they would not start working on retirement until they were a year or less away from retirement. Another 43 percent said they would not start saving for retirement until they were five years away. Those are bad numbers, and also you should get a head start.
Fewer mothers and fathers intend to leave a legacy
Only 14 percent of boomers' parents think that they will leave any kind of inheritance for their kids, which means most baby boomers should not hope for any sort of inheritance, according to Allianz. Baby boomers include 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
Instead, many elderly mothers and fathers 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 a hand.
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 more to live longer
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 depression, according to the Star Tribune. Retirement is becoming much more costly with increasing costs of medical care.
Not anticipating it to cost so much
A second study from Allianz recently concluded that about a 3rd of transition baby boomers -- those between the ages of 55 and 65 -- were not even sure of how much they will need to accrue for retirement.
Walter White is the President and CEO of Allianz Life. He said:
"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."
About 10 percent of those in the survey even thought about inflation when preparing for retirement. About 16 percent looked at taxes when it came to estimating for the future. People generally do not include taxes or inflation.
Begin early
If you would like a great retirement account by the time you get there, you need to start early, according to Allianz. About 16 percent said they would not start working on retirement until they were a year or less away from retirement. Another 43 percent said they would not start saving for retirement until they were five years away. Those are bad numbers, and also you should get a head start.
