According to a couple of recent reports, more and more people nearing retirement 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 kids is quickly becoming a quaint custom of the past.
No legacy is very important
Allianz, a provider of life insurance, noted that most baby boomers -- those born roughly between 1946 and 1964 -- had better not hope for a fat inheritance as their retirement approaches. Times being what they are, only 14 percent of boomers' parents 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."
Change to sustaining parents
A ton of times, children end up taking care of their parents for the rest of their lives. Elderly mothers and fathers are just trying to make it on the few pennies they have left.
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."
Rising med costs
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 tough economy, according to the Star Tribune. Retirement is becoming much more expensive with increasing expenses of medical care.
Too much retirement cost
Allianz did a study recently that showed a 3rd of transition seniors did not know how much they even essential 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."
Most have also not properly factored inflation and taxes into their estimated 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.
Begin early
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 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.
No legacy is very important
Allianz, a provider of life insurance, noted that most baby boomers -- those born roughly between 1946 and 1964 -- had better not hope for a fat inheritance as their retirement approaches. Times being what they are, only 14 percent of boomers' parents 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."
Change to sustaining parents
A ton of times, children end up taking care of their parents for the rest of their lives. Elderly mothers and fathers are just trying to make it on the few pennies they have left.
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."
Rising med costs
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 tough economy, according to the Star Tribune. Retirement is becoming much more expensive with increasing expenses of medical care.
Too much retirement cost
Allianz did a study recently that showed a 3rd of transition seniors did not know how much they even essential 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."
Most have also not properly factored inflation and taxes into their estimated 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.
Begin early
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 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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