The fact that the baby boomer generation is reaching the age of retirement has been well documented. Statistics are showing that a high percentage of these individuals are not financially prepared.
Many of these people have been remiss because in the back of their minds they expect to receive inheritances when their parents pass away. Researchers tell us that the expectations of a significant percentage of these people may not be met.
One of the reasons why the inheritances may be reduced is because of the fact that people are living longer and longer. Once a man reaches the age of 65 he has a 60% chance of living until he is at least 80, and a four in 10 chance of reaching the age of 85.
The 85 and over age group is growing faster than any other, and of course the longer you live the more money you are going to spend. The more you spend as a senior citizen the less you will have to pass along to your children.
The recent economic downturn also played havoc with inheritances that many baby boomers were expecting. Between June of 2006 and June of 2010 the value of inheritances that were earmarked for baby boomers decreased by 13% according to the Boston College Center for Retirement Research.
The expectation of an inheritance is no substitute for a sound retirement plan. There are no guarantees, and if you go through life without accumulating your own resources because you are expecting an inheritance you may regret this decision when you are a senior citizen.