A couple of recent reports by Allianz point to the difficulty of retirement in today's poor economy. Most of those approaching retirement are not only unprepared, but often they have no realistic concept of how much cash they need to put away to retire. Consequently, their kids will likely not see an inheritance from their parents.
Not as many mothers and fathers leaving cash
Anyone born between 1946 and 1964 is considered one of the baby boomers. About 14 percent of boomer's parents say they will leave anything to their kids after they die, so baby boomers should not be anticipating any type of inheritance.
According to "Someday All This Will Be Yours" author Hendrik Hartog:
"Culturally, the idea of a legacy has disappeared for all but the very wealthy."
Paying for parents
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.
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."
Paying for medical
Because we live longer now, the expense 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 back. That is probably a bad sign.
Underestimating price of retirement
Allianz did a study recently that showed a third of transition baby boomers did not know how much they even necessary 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."
When it comes 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 thought of inflation.
Begin early
There were a lot of people who did not prepare early. In fact, 16 percent said they would wait until they were a year away from leaving the job to start saving. Another 43 percent said that they did not consider retirement until they were five years away from leaving their job. Allianz suggests every person get a head start.
Not as many mothers and fathers leaving cash
Anyone born between 1946 and 1964 is considered one of the baby boomers. About 14 percent of boomer's parents say they will leave anything to their kids after they die, so baby boomers should not be anticipating any type of inheritance.
According to "Someday All This Will Be Yours" author Hendrik Hartog:
"Culturally, the idea of a legacy has disappeared for all but the very wealthy."
Paying for parents
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.
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."
Paying for medical
Because we live longer now, the expense 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 back. That is probably a bad sign.
Underestimating price of retirement
Allianz did a study recently that showed a third of transition baby boomers did not know how much they even necessary 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."
When it comes 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 thought of inflation.
Begin early
There were a lot of people who did not prepare early. In fact, 16 percent said they would wait until they were a year away from leaving the job to start saving. Another 43 percent said that they did not consider retirement until they were five years away from leaving their job. Allianz suggests every person get a head start.
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