According to dual recent surveys, most Americans who are nearing retirement age are not adequately ready for their future. In fact, says one of the reports, most do not even have a practical concept of what their retirement will cost. Consequently, the custom of leaving an inheritance for your sons or daughters is vanishing.
Fewer parents intend to leave a legacy
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 kids an 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."
Helping parents out now
Instead, many elderly parents are using every cent they accumulate to live the remainder of their own lives. Often, it even becomes up to their kids to give them help.
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."
Rising med costs
As the average lifespan lengthens and the cost of medical care increases, the price of retirement is likewise escalating. In addition, the value of homes and other assets has taken massive hits in the tough economy. According to the Star Tribune, the average American's net worth today is only $77,000. That is about the same as it was 20 years ago.
Underestimating expense of retirement
Those from 55 to 65 did not even know how much cash they should be saving for retirement, according to an Allianz study.
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 projected 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. 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.
Fewer parents intend to leave a legacy
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 kids an 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."
Helping parents out now
Instead, many elderly parents are using every cent they accumulate to live the remainder of their own lives. Often, it even becomes up to their kids to give them help.
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."
Rising med costs
As the average lifespan lengthens and the cost of medical care increases, the price of retirement is likewise escalating. In addition, the value of homes and other assets has taken massive hits in the tough economy. According to the Star Tribune, the average American's net worth today is only $77,000. That is about the same as it was 20 years ago.
Underestimating expense of retirement
Those from 55 to 65 did not even know how much cash they should be saving for retirement, according to an Allianz study.
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 projected 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. 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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