A couple of recent reports by Allianz point to the problem 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 money they have to put away to retire. Consequently, their kids will likely not see an inheritance from their parents.
Not as many parents leaving cash
Anyone born between 1946 and 1964 is known as one of the baby boomers. About 14 percent of boomer's mothers and fathers say they will leave anything to their children after they die, so baby boomers should not be anticipating any type of 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."
Support for parents
A ton of times, kids end up taking care of their mothers and fathers for the rest of their lives. Elderly parents are just trying to make it on the few pennies they have left.
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 price 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 ago. That is most likely a bad sign.
Not anticipating it to cost so much
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.
Preparations take too long
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 from closing the door on their careers. Another a 16 percent said they will wait until one year or less from retirement to start.
Not as many parents leaving cash
Anyone born between 1946 and 1964 is known as one of the baby boomers. About 14 percent of boomer's mothers and fathers say they will leave anything to their children after they die, so baby boomers should not be anticipating any type of 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."
Support for parents
A ton of times, kids end up taking care of their mothers and fathers for the rest of their lives. Elderly parents are just trying to make it on the few pennies they have left.
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 price 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 ago. That is most likely a bad sign.
Not anticipating it to cost so much
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.
Preparations take too long
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 from closing the door on their careers. Another a 16 percent said they will wait until one year or less from retirement to start.
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