According to a pair of recent surveys, more and more people nearing retirement are ill-prepared for it. Most 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 children is rapidly becoming a quaint custom of history.
No legacy is very important
Allianz, a provider of life insurance, reported that most baby boomers -- those born roughly between 1946 and 1964 -- had better not wish for a fat inheritance as their retirement nears. 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."
Children give mothers and fathers support
A ton of times, kids end up taking care of their parents for the rest of their lives. Elderly parents are just trying to make it on the few pennies they have left.
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 expensive with increasing expenses of medical care.
Too much retirement cost
Allianz did a study recently that showed a third of transition baby boomers did not know how much they even essential for retirement.
Allianz Life President and CEO Walter White wrote:
"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 typically do not consist of taxes or inflation.
Beginning earlier
There were many people who did not prepare early. In fact, 16 percent said they would wait until they were a year 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 everyone get a head start.
No legacy is very important
Allianz, a provider of life insurance, reported that most baby boomers -- those born roughly between 1946 and 1964 -- had better not wish for a fat inheritance as their retirement nears. 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."
Children give mothers and fathers support
A ton of times, kids end up taking care of their parents for the rest of their lives. Elderly parents are just trying to make it on the few pennies they have left.
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 expensive with increasing expenses of medical care.
Too much retirement cost
Allianz did a study recently that showed a third of transition baby boomers did not know how much they even essential for retirement.
Allianz Life President and CEO Walter White wrote:
"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 typically do not consist of taxes or inflation.
Beginning earlier
There were many people who did not prepare early. In fact, 16 percent said they would wait until they were a year 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 everyone get a head start.
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