A couple of recent studies 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 practical concept of how much cash they need to put away to retire. Consequently, their children will likely not see an inheritance from their parents.
Boomers not leaving anything behind
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 nears. Times being what they are, only 14 percent of boomers' mothers and fathers feel they can afford to leave their kids an inheritance.
Hendrik Hartog, author of "Someday All This Will Be Yours," wrote:
"Culturally, the idea of a legacy has disappeared for all but the very wealthy."
Support for mothers and fathers
Elderly parents 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 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."
Increased expenses for a lifetime
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 huge 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 price of retirement
A second study from Allianz recently concluded that about a third of transition seniors -- those between the ages of 55 and 65 -- were not even sure of how much they will have to accrue for retirement.
President and CEO of Allianz Life, Walter White, explained:
"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 problem is that people do not factor in taxes or inflation. About 16 percent considered taxes in their estimate while only 10 percent believed of inflation.
Best way to prepare
If you need a fantastic retirement account by the time you get there, you need to start early, according to Allianz. About 16 percent said they would not start working on retirement until they were a year or less from retirement. Another 43 percent said they would not start saving for retirement until they were five years away. Those are bad numbers, and you should get a head start.
Boomers not leaving anything behind
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 nears. Times being what they are, only 14 percent of boomers' mothers and fathers feel they can afford to leave their kids an inheritance.
Hendrik Hartog, author of "Someday All This Will Be Yours," wrote:
"Culturally, the idea of a legacy has disappeared for all but the very wealthy."
Support for mothers and fathers
Elderly parents 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 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."
Increased expenses for a lifetime
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 huge 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 price of retirement
A second study from Allianz recently concluded that about a third of transition seniors -- those between the ages of 55 and 65 -- were not even sure of how much they will have to accrue for retirement.
President and CEO of Allianz Life, Walter White, explained:
"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 problem is that people do not factor in taxes or inflation. About 16 percent considered taxes in their estimate while only 10 percent believed of inflation.
Best way to prepare
If you need a fantastic retirement account by the time you get there, you need to start early, according to Allianz. About 16 percent said they would not start working on retirement until they were a year or less from retirement. Another 43 percent said they would not start saving for retirement until they were five years away. Those are bad numbers, and you should get a head start.
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