Baby Boomer Parents May Not be Leaving You a Bundle

Only 30% of people ages 65 to 75 consider leaving money for heirs to be a top priority, says a PNC Financial Services Group survey

Instead, they claim that peace of mind and enjoying life are primary objectives, reports CNBC in its recent article, “Don’t hold out for that inheritance from your rich grandpa.”

The survey asked nearly 500 people ages 65 to 75 with at least $50,000 in investible assets, excluding their workplace retirement plans. When they examined how seniors spend money, they're not planning to leave it to heirs.

Business-986674_640The estate tax exclusion is currently at $5.49 million for individuals and headed to $5.6 million in 2018. The proposed GOP tax bill would double that amount. As a result, Baby Boomers' priorities may be changing. Instead of devoting time to estate planning and sheltering assets from taxes, many want to enjoy their money now.

Boomers say having "peace of mind" is the most popular goal for the 65-to 75-year-olds. About half said they want to enjoy comfort and financial security in their retirement. The second most popular goal was "enjoying life," according to 46% of those surveyed. Traveling rounded out the top three retirement objectives.

While enjoying yourself may not be the first thought for many when preparing for life after a career, there are benefits to accommodating this and other "soft goals" into retirement planning. Don't underestimate the significant impact that emotions play in the decision-making process.

Here are a few ideas and suggestions for savers who want to reach retirement with enough cash.

Formally state your goals. While retirement is the end goal for most of us, you should try to clearly define what you want to achieve once you get there. In this way, you’ll have a destination in mind. Try to be very specific, such as including an objective to save a particular amount or to pay off a debt.

Create a plan. It’s not much of a plan to achieve some specific goals, if you don’t chart your course and only wing it. Sit down and consider the changes you'll need to make to your spending habits and your budget to accomplish your savings goals.

Take action and review your efforts. Make a commitment to your plan and be sure you monitor your progress on a regular basis. When people have a plan, they're more able to address and overcome issues when obstacles present themselves.

We offer a FREE educational workshop to support you with getting to know the importance of estate planning.  Just click here to reserve your spot today and we'll see you then!

Jeffrey Bellomo, Esq.



Reference: CNBC (November 14, 2017) “Don’t hold out for that inheritance from your rich grandpa”

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