According to a pair of recent reports, more and more people nearing retirement are ill-prepared for it. Many are not even conscious of the true costs that lay ahead of them. As a result, the custom of leaving a financial legacy for you kids is swiftly becoming a quaint custom of history.
Not as many parents leaving cash
Allianz, a provider of life insurance, noted that most baby boomers -- those born roughly between 1946 and 1964 -- had better not wish for a fat inheritance as their retirement approaches. Times being what they are, only 14 percent of boomers' mothers and fathers feel they can afford to leave their children an 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."
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.
Kay Kramer of KLB Financial 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 expenses increase
Because we live longer now, the cost 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 back. That is most likely a bad sign.
Retirees not sure what to save
Allianz did a study recently that showed a third of transition baby boomers did not know how much they even needed 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 imagined 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.
Start as early as possible
Allianz decided 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 start.
Not as many parents leaving cash
Allianz, a provider of life insurance, noted that most baby boomers -- those born roughly between 1946 and 1964 -- had better not wish for a fat inheritance as their retirement approaches. Times being what they are, only 14 percent of boomers' mothers and fathers feel they can afford to leave their children an 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."
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.
Kay Kramer of KLB Financial 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 expenses increase
Because we live longer now, the cost 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 back. That is most likely a bad sign.
Retirees not sure what to save
Allianz did a study recently that showed a third of transition baby boomers did not know how much they even needed 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 imagined 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.
Start as early as possible
Allianz decided 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 start.
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