Boomers’ Inheritance Vanishing
Posted On June 15, 2012
Boomers are losing their expected inheritance to their parents’ longevity, according to an analysis in the Wall Street Journal. Matures who have reached their late 60s have as much as a 50-50 chance of living well into their 80s and many into their 90s. Thanks to medical and longevity gains, 85-and-over is the fastest growing age group in the nation. But thanks to that longevity, the Boomers expected inheritance is shrinking as long-lived retirees use their resources to support themselves.
It’s long been estimated that over $40 trillion in inheritance would change hands in the first half of this century. Now, according to some, that figure is shrinking because that wealth will be used for longer-than-expected retirements instead of bequests to heirs.
Accordingly, many Boomers are lowering their expectations for an inheritance and, in surveys, they claim that other legacies from their families are more important than money. “An inheritance would help, but I am not looking forward to it,” says a Leading-Edge Boomer. “I don’t want an inheritance if I have to lose someone I love.”