The increase in lifespan of members of older generation and medical expenses are depleting the amount of money that the greatest generation has to bequest to their heirs. While some future heirs are well aware that the amount of inheritance that they are likely to receive has decreased, less than half of the members of Generation Z still believe that they will receive a large inheritance. Generation Z encompasses ages 13-22. These individuals are so confident that many of them do not believe that they have to prepare or save for retirement.
In contrast, only 16% of their parents expect to actually provide an inheritance to these children. More than half of the people in this generation argue that leaving an inheritance is not their primary concern. On the other hand, this generation of adults is more likely to pay for their child's college education and do not expect their children to help them if they run out of retirement money. What members of Generation Z need to understand is that the financial situation of our country is not as secure as it was years ago. Many seniors today think that Social Security or their pensions will not always be around to secure their finances. With the changing situation, people are less and less likely to worry about what they will leave behind and more about whether they will have enough to survive.
Among adults with at least $100,000 in investable assets, 58% say leaving an inheritance is not a primary concern. Instead, 42% say that saving for retirement is their primary financial goal, while passing on money to a future generation is far down the list. Only 2% say it is a primary financial goal.
Sarasota and Manatee County Florida residents need to pay attention to these facts and not rely upon the next generation to fund their future retirements. So as each generation earns less than the prior one and social security runs annual deficits, retirement planning will become more important than ever.
View more information from Marc J. Soss at http://www.fl-estateplanning.com/ and http://info.fl-estateplanning.com/
Marc Soss' practice focuses on estate and tax planning; probate and trust administration and litigation; guardianship law; and corporate law in Southwest Florida. Marc is a frequent contributor to LISI and has published articles and been quoted in the Florida Bar, Rhode Island Bar, North Carolina Bar, Association of the United States Navy, Lawyers USA, Military.Com, Forbes.Com, and CNN Business. Marc also serves as an officer in the United States Naval Reserve.
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