Of course nobody wants to see their parents or grandparents pass away, and when this takes place it can be emotionally devastating. That being stated, everyone does pass away. As a result it would be disingenuous to suggest that people do not anticipate receiving inheritances.
There are those who may not take retirement planning all that seriously because they do in fact expect to inherit money when they become senior citizens. However, these assumptions may not be wise given the statistical realities.
The economic crisis that engulfed the country back in 2007 and 2008 took a heavy toll on baby boomer inheritances. A study that was done by Boston College found that the average inheritances that baby boomers can expect to receive went down by 13% during the four-year period between June of 2006 and June of 2010.
Clearly there is a direct correlation between this decrease and the economic debacle. However, there is a broader factor to consider.
The longer you live the more money you are going to spend to pay your bills and support your lifestyle. Individuals are living longer lives as medical science advances. These longer lifespans would naturally erode inheritances.
When you consider the implications of the above you can see why it is important to make no assumptions regarding inheritances. The wise course of action is to take personal responsibility and develop a sound long-term financial plan that leads to financial security during your senior years.
If you get started early enough and you are fortunate enough to earn a solid living you can indeed accumulate the underpinning that you need as long as you act intelligently on a consistent basis with your future well-being in mind.
- What Are Advance Directives? - November 22, 2022
- What Is a Totten Trust? - November 8, 2022
- What Can Good Estate Planning Do for You? (Part 1) - October 25, 2022