A recent article in the Wall Street Journal highlights a change in the way people treat inheritance as a priority in their retirement planning.
But for a growing number of boomers, things aren’t going according to plan. The postwar generation is living longer—and many are spending their savings along the way. And, of course, many of them also took a hit in 2008.
It seems that even though the baby boom generation has enjoyed massive prosperity, they are still looking to their parents to support them in retirement. We can’t all depend on somebody else to support us.
“There are way too many adult children I see who are looking at Mom and Dad’s estate as their ticket to a secure retirement,” says M. Holly Isdale, an estate planner in Bryn Mawr, Pa. “But with people living longer, much of the money is likely to be spent.”
The changing priorities of the affluent investors in a recent Merrill Lynch wealth management studies show a decline in the number who prioritize and inheritance for their kids or grandkids.
Even the affluent are pulling back. Among those with $250,000 or more in investible assets, only 41% said preserving inheritances was a top concern, down from 54% in 2009, according to a Merrill Lynch survey released earlier this year. Due in large part to a 22% decline in projected future bequests of $500,000 or more, the amount individuals expect to transfer fell by 19% from 2008 to 2009, according to Michael Hurd, director of the Center for the Study of Aging at Rand Corp., a nonprofit research organization.
Altogether it is an interesting article and worth reading. You can find it here